Patricia Kowsmann
Portugal's Novo Banco, which kept the "good" assets of collapsed
Banco Espirito Santo SA, said Monday that, as expected, it will
lose most of the 451 billion Angolan Kwanza ($4.6 billion) loan
Banco Espirito Santo had given to its bank in Angola.
Of the total loan, which has been fully provisioned, about 361
billion Angolan Kwanzas will be used to cover losses at troubled
Banco Espirito Santo Angola following a decision by that country's
central bank, Novo Banco said in a statement.
Of the remainder, 7 billion Angola Kwanzas will be converted
into shares of BES Angola, representing a stake of 9.9%. The rest,
about 83 billion Angola Kwanzas, will be converted into loans to
BES Angola.
Banco Espirito Santo owned 56% of BES Angola before the
Portuguese lender's collapse. That stake was transferred to the
"bad bank" resulted from the break-up and rescue of Banco Espirito
Santo, while the loan, already fully provisioned by the defunct
bank, was transferred to Novo Banco.
Under the reorganization of BES Angola, the stake held by the
"bad bank" has been wiped out.
Write to Patricia Kowsman at patricia.kowsmann@wsj.com