Novobanco to request further €209M capital from bank resolution fund
According to the bank, the capital requirement is due to the impact of the new accounting regime and a contingency related to property taxation.
Novobanco will request a further capital injection of €209 million from the bank resolution fund relating to 2021, a year in which the bank made a profit of €184.5 million, it said in a statement on Wednesday.
According to the bank, the capital requirement is due to the impact of the new accounting regime and a contingency related to property taxation.
In 2017, at the time of the sale of 75% of Novobanco to US investment fund Lone Star, the Resolution Fund committed to, until 2026, cover losses on ‘toxic’ assets that Novobanco was left with from BES up to €3.890 billion.
Each year since then, the Resolution Fund’s capital injections into Novobanco have caused controversy.
So far, under this agreement, Novobanco has consumed €3.405 billion of public money.
