LISBON Aug 12 The healthy bank carved out of
Banco Espirito Santo will take on the bank's 3 billion
euros credit line to a troubled Angolan subsidiary but will
immediately take provisions for losing the entire amount, the
Bank of Portugal said on Tuesday.
The new bank, Novo Banco, was created to take on the healthy
assets of one of Portugal's largest banks, leaving shareholders,
junior creditors and troubled Espirito Santo family loans behind
in the original bank.
In a statement to Reuters, Bank of Portugal said that Novo
Banco would also take on the interbank loans granted to BES's
troubled Angolan subsidiary but that the credit line had been
"The total provisionining for these credits is only a
measure of caution and does not reflect, in any way, a lack of
expectations of recovering the loans," the Bank of Portugal
added in the statement.
The Bank of Portugal also said that the rescue of BES had
been designed so that no creditor would face a greater loss now
than they would have if the bank had been liquidated.
(Reporting By Laura Noonan and Andrei Khalip, editing by Axel