Novo Banco president says 2019 was “an important milestone” for the bank
Novo Banco president says 2019 accounts are "of particular relevance" given that the period when the bank had to comply with various Brussels requirements in terms of viability has ended.
António Ramalho, Novo Banco President, who presents this Friday’s annual accounts, considers that 2019 represented “an important milestone” in the institution’s restructuring.
In a letter addressed to the Chairman of the Budget and Finance Committee, Filipe Neto Brandão, the Bank’s Chairman stated that the disclosure of last year’s results is of “special relevance”, given that “the period in which the Novo Banco had to comply with a wide range of commitments contained in the agreement signed between the Portuguese State and the European Union, at the time of its sale operation, has ended”.
It is in this sense that Ramalho assumes that “the present financial year represents an important milestone in the restructuring process started in 2017,” when the bank was sold to the Americans from the Lone Star. These are viability commitments that the bank had to comply with by the end of last year and which ensure the continuation of the adjustment without additional closures or redundancies.
Novo Banco has again made significant losses in 2019, which will force it to activate again the contingent capital mechanism agreed between the government and the European Union three years ago. Luís Máximo dos Santos, president of the Resolution Fund, which holds 25% of Novo Banco, revealed this Wednesday that the financial institution will ask for 1,037 million euros.
