Novo Banco repays today the 1.5 billion of debt guaranteed by the Portuguese State

  • ECO News
  • 20 February 2017

This reimbursement will end the state aids the bank benefited from. The Portuguese Treasury will receive 1.5 billion euros, meaning they will no longer give any guarantee to Novo Banco's debt.

An official source from the bank told Portuguese news agency Lusa that Novo Banco is reimbursing this Friday its last state guaranteed debt issuance worth 1,500 million euros, benefiting from the “improvement and recovery” of its liquidity in 2016.

“Extinguishing this issuance ends the state aids the bank was benefiting from”, highlighted Novo Banco, pointing to the “improvement and recovery of its liquidity” which allowed to anticipate the payments of the debt to the Treasury in the end of 2016.

In November of 2016, Novo Banco paid 1,000 million euros from an issuance which matured in December, and, in that last month of 2016, anticipated the partial repayment of 700 million euros from the 1,000 million euros issuance which matured in January 2017. Today, with the 1,500 million euros’ issuance, Novo Banco no longer holds any debt instrument with the State’s guarantee.