Novo Banco

American fund Lone Star will keep Novo Banco until 2021

American vulture fund Lone Star, which owns Novo Banco, says it has no plans to sell it before 2021.

The fund, which owns 75% of Novo Banco, says it will continue restructuring the bank which will last another 12-18 months.

The statement was given to Dinheiro Vivo at a time when speculation has been swirling around the bank’s future, namely that it will be sold to either Millennium bcp or Santander.

When Lone Star bought its stake in the bank in October 2017, it did so under an agreement that it would not sell its share for at least three years. The remaining 25% is held by the bank sector’s Resolution Fund.
“Lone Star does not have plans to sell its stake in Novo Banco in the short term,” stated Lone Star.

“We are confident that the bank’s restructuring phase can be completed in the next 12 to 18 months, taking advantage of attractive market conditions to clear the remaining legacy (Non-Performing Loans) from Banco Espírito Santo.”

Lone Star stresses that Novo Banco is “viable and growing” and that its “positive results” have been able to “absorb part of the losses inherited from BES”.

“Up until the present the bank has complied with the plans agreed upon with the European Commission in Portugal at the time of its (the bank’s) acquisition by Lone Star and is meeting the capital needs expected regarding the legacy from BES,” it states.

More business news at www.essential-business.pt