Edition 1453
09 December 2017
Edition: 1453

Read this week's issue online exactly as it appears in print.

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Court condemns NB in bond sale

by TPN/ Lusa, in News · 06-12-2017 08:35:00 · 0 Comments


A court in Aveiro has condemned Portuguese bank Novo Banco to pay more than €100,000 to a client who it sold bonds to in December 2014, which were then transferred to the BES ‘bad bank’ in 2015 wiping out the investment.

Court condemns NB in bond sale

 

The court has demanded that the bond sale “contract is cancelled” and Novo Banco results the money to its client.

 

The case goes back to December 2014, when the client subscribed 100,000 Novo Banco bonds for €101.600 (including commissions and stamp duty).

 

However, in December 2015 thedse securities were affected by a decision from the Bank of Portugal to transfer a series of bonds from Novo Banco to the BES ‘bad bank’ (the entity that kept the problematic assets of what used to be BES and that did not have the financial capacity to honour its commitments).

 

The claimant said that it was only then that he realised he had acquired financial products connected with BES, which he had been promised was not the case and accused Novo Banco of not giving his the correct information.

 

Novo Banco can now take this decision to the Court of Appeal.

 

Large international funds such as Blackrock and Pimco have been highly critical of the central bank’s decision, which they consider “illegal and discriminatory” and are opposing it in court.

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Edition 1453
09 December 2017
Edition: 1453

Read this week's issue online exactly as it appears in print.

Twitter