Novo Banco

Parliament approves date extension of Novo Banco inquiry

The Portuguese parliament has approved extending the date limit of a public inquiry into alleged mismanagement at Banco Espírito Santo which collapsed in 2014 and its successor Novo Banco which was saddled with crippling toxic debts as a result.

The Novo Banco commission of inquiry was granted a two-month extension.

The decision to once again extend the timeframe for the hearings by the parliamentary inquiry into debts recorded by Novo Banco and attributed to the Resolution Fund was unanimously approved. The inquiry was extended for 60 days starting from May 28.

This was done to carry out the auditions that have yet to be undertaken, as well as summing up and evaluating all of the information which will be discussed before a final report into the inquiry findings is issued by the end of the summer.

The latest loan for Novo Banco from the Portuguese banking sector paid into the Resolution Fund to finance the bank was formalised on Monday and totalled €475 million which can be used by 2022.

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