A single debtor owes 904 million to Novo Banco

The debtor that generated the most losses to Novo Banco owes 904 million euros in capital investments, followed by a loss of 244 million euros generated by a large debtor (when there are transactions that exceed 43.3 million euros), according to a report prepared for the Bank of Portugal (BdP) by Novo Banco (NB) published today by the supervisor.

According to the report, 31 debtors still had exposure to Novo Banco in 2019, compared to 43 in the original exposure. At the end of December 2019, Novo Banco had an exposure of 3,118 million euros to large debtors, to which are added 1,036 million in impairments and 2,828 million in other losses, according to the same document.

Of the total exposure of 3,118 million as of December 31 of last year, 1,305 million correspond to credit borrowers and 1,813 to equity instruments. The document does not identify the debtors, although the Government has already sent the names of those targeted to Parliament, as reported yesterday by the “Economic Journal”.

Today’s report is delivered as a consequence of compliance with Law 15/2019, which requires the disclosure of aggregated and anonymized information on Novo Banco’s main financial positions, “after the payment made by the Resolution Fund to Novo Banco, on May 6, 2020, under and in compliance with the provisions of the Contingent Capitalization Contract, signed on October 18, 2017 ”, it can be read in the statement of the Bank of Portugal.