Novo Banco reaches an agreement with former BES’ emigrant clients

  • ECO News
  • 9 August 2017

Former BES' emigrant clients will receive 75% of the investments they made on the bad bank, within an average period of three years. In return, they will drop the lawsuits against Novo Banco.

The Association representing BES former emigrant clients (Associação Movimento Emigrantes Lesados — AMELP) has reached an agreement with the Government and Novo Banco to recover part of the money they invested and lost in the bank. They will receive 75% of the investments they made on the bad bank, within an average period of three years. In return, those former clients accepted to drop the legal lawsuits against Novo Banco, the “good bank” resultant from the resolution measure to Banco Espírito Santo in 2014.

“We are glad to announce that we reached an agreement with Novo Banco and the Portuguese Government to recover our money”, the Association states on their Facebook page. The solution was reached after a meeting this Tuesday between the representatives of AMELP and the Portuguese PM António Costa, as well as António Ramalho, Novo Banco’s CEO.

According to AMELP, those who invested in the following products will recover 75% of the capital, in cash, within around three years:  Euro Aforro 8, Poupança Plus 1, Poupança Plus 5, Poupança Plus 6, Top Renda 4, Top Renda 5, Top Renda 6 and Top Renda 7. “The solution has small variations which will be presented during the upcoming days. For now, the Euro Aforro 10 and EG Premium are not comprehended in the solution, but “both the Government and Novo Banco assured they will also find a solution for them”.

Between August 11 and 28, those emigrants will be called by Novo Banco to be presented with the solution proposals. “AMELP considers this to be an honest, truthful and necessary request. Those who do not accept the solution between the 11th and 28th of August, could be left out“, the Association warns. Even those who invested in the Euro Aforro 10 product should attend the meeting, since they “could receive, in October, the first part of the deposit (around 15%), corresponding to the amount Novo Banco found available in the vehicle”.

In addition, AMELP recalled: “If the emigrants are considered common creditors in BES, they could be entitled to 31.7% of the capital, to be paid by the “Resolution Fund”. The Association also mentions they started discussions with the Government in order for those 31.7% to be paid.