Novo Banco

Government to inject €1.4 billion into Novo Banco

The government is looking at ways to speed up the last phase of a recapitalisation process of a bank that was created from the ashes of Banco Espírito Santo which collapsed in 2014.

Novo Banco will receive a one-off capital injection of €1.4 billion sooner rather than later which will enable the government to save €600 million against the maximum amount foreseen under the contingent capital mechanism agreed when 75% of the bank was sold to US vulture capital fund Lone Star.