Finance ministry released 430 million to the Resolution Fund for an injection in Novo Banco
The Finance ministry lent the Resolution Fund 430 million euros for an injection in Novo Banco, an amount that should stand below the maximum amount of 450 million euros that was foreseen.
The Finance ministry lent the Resolution Fund 430 million euros for an injection in Novo Banco, according to the news disclosed by the Portuguese newspaper Jornal de Negócios. This amount stands below the maximum amount of 450 million euros that was foreseen.
The bank headed by António Ramalho ended 2017 with the largest losses of its brief history, accounting for losses of 1.4 billion euros. This record amount lead the institution to activate the capital contingent mechanism for 792 million euros.
When the results were announced, the Resolution Fund said the Portuguese State would lend a maximum of 450 million euros, since the contributions paid by the banking sector would be enough to cover the remaining amount. However, this injection ended up below the amount that had been foreseen.
Last Friday, the Portuguese secretary of State Assistant and of Finance, Ricardo Mourinho Félix, had previously stated that the injection would be “concluded in the next couple of days”.
