Resolution Fund: “We will surely sell Novo Banco”

The Resolution Fund chairman is confident in the sale of the Novo Banco to the North-American fund Lone Star. Máximo dos Santos states the right conditions will be created in order to close the operation. The process is dependent on the exchange of senior bonds worth 500 million euros.

“At this stage, I would say we will surely be able to sell Novo Banco“. This assurance was made by the Resolution Fund chairman in the Budgetary and Finance committee concerning BES/Novo Banco, when Máximo dos Santos was asked of a plan B, in case the senior bonds exchange is unsuccessful.

Novo Banco‘s sale process to the North-American fund Lone Star is still dependent on this operation. As ECO disclosed, senior bondholders will be asked to “voluntarily” exchange these securities for others, in an operation whose details are still unknown. What will happen if they do not accept it? There is, of course, a plan b: a mandatory bail in which, in practice, corresponds to a new resolution, this time of Novo Banco.

Yet, Máximo dos Santos does not add any more details about the operation; he only states that no contact has been made with bondholders, clarifying it should be made by the resolution national authority.

The Resolution Fund chairman states it is of the interest of bondholders, creditors and the State that the transition bank is sold. “We all want the bank to take its course, maintaining the unity and ceasing its transition bank statute”, the head of the Fund clarifies.