Novo Banco to Request €700 Million from Resolution Fund

11 November 2019 – Novo Banco will reportedly ask Portugal’s Resolution Fund for a new capital injection of more than 700 million euros in 2019. Losses for the first three quarters of the year have already exceeded €640 million.

The Resolution Fund will complete the capital injection within the contingent capital mechanism that was agreed upon during negotiations of the sale of 75% of Novo Banco to the US-fund Lone Star. The fund is required to inject funds into Novo Banco whenever there are losses on the sale of a specific set of assets that negatively impact the bank’s accounts.

Original Story: Jornal Expresso – José Carlos Carvalho

Adaptation/Translation: Richard D. K. Turner