State becomes second largest shareholder in Novobanco

The Portuguese State is to overtake the Resolution Fund to become the second largest shareholder in Novobanco according to changes that will be made at the bank’s annual general assembly meeting that took place on Friday according to Jornal Económico.

The Resolution Fund, financed by contributions from the Portuguese banks, but under the aegis of the Public Administration, is to dilute its shareholding in the bank. This means the State will in turn become the second largest shareholder in front of the Resolution Fund by increasing its share to over 15%.

It was agreed at the assembly meeting that the State would reinforce its position in the bank from 11.96% to 15.6% by reducing the Resolution Fund share to 9.45%.

Novobanco is expected to deliver the State 3.46% of the capital unless the shareholders exercise a vote against. The amount of the new increase in capital involved from a new conversion of tax credits is not known.