Big debtors cost Novo Banco €3.5Bn
Big debtors have generated losses of €3.5Bn for Novo Banco according to the Bank of Portugal in its report about bank loan defaulters.
The document reveals the losses for each Portuguese bank that obtained public support over the past 12 years through large-scale refinancing operations.
The total losses reflect loans that were not paid and other deals that ended up being ruinous for the banks.
The losses recognised or the five preceding years include write-offs, sales, repossessions or restructuring ( the latter with the expectation that the loans may be recovered).
In addition to Novo Banco, Caixa Geral de Depósitos (CGD), Banif, BPN, BCP and BPI are also included in the report which since 2007 have received the support of €24Bn in public funds.
The list awarded different criteria to the banks. The definition of large debtor is in accordance to the amount of public involvement in each bank: at Caixa a large debtor is one who exposure is over €62.5 million; in BCP the minimum limit is €30 million.
The highest debtor amounts are to be found at Novo Banco which on 30 June, 2018 recognised losses that were over €3.5Bn from loan operations and participations in capital instruments.
This is followed by BCP with losses of €2.02Bn, mostly from capital instruments. In the case of CGD losses stood at €1.9Bn on 30 June, 2017. In terms of loans, Caixa lost €1.3Bn while participations in capital instruments lost the bank €576 million.