The rules of EU bank resolution dictate that an assessment is made by an independent person to determine the amount of any compensation to the shareholders of BES, today unveiled the supervisor of the Portuguese market.
Under EU directive on procedures for resolution of credit institutions and certain investment firms, “Member States shall ensure that if resolution authorities to transfer only part of the rights, assets and liabilities of the institution object resolution, the shareholders and the creditors whose claims have not been transferred can not be worse off than they would have if the institution had been liquidated under ordinary insolvency proceedings “, informed the Commission of the Securities Market ( CMVM).
To this end, Member States “ensure that an assessment by an independent person to be held as soon as possible after (s) measure (s) for resolution in question have effects (this assessment is made an optical settlement and therefore distinct from made for the purpose of resolution), “he said.
In a document containing a set of answers to frequently asked questions following the application of the measure of resolution Banco de Portugal Banco Espírito Santo (BES) and creation of the New Bank, the CMVM also stressed that “the policy also states that any positive result from the sale of the bridge bank (in this case, the New Bank) accrues to the shareholders and creditors of the bank object resolution (BES), with him because this value if it is greater than the value Settlement above. ”
It is the application of this framework will result eventually the amount of compensation due to shareholders of BES and therefore the value of the shares, clarified the organization led by Carlos Tavares.
However, the shareholders’ losses will take priority and will therefore graduates in last place after the common and subordinated creditors creditors as a common settlement process, “he stressed.
The CMVM also revealed that the trading of shares in BES bag will remain suspended “until the disclosure of relevant and reliable information about the issuer”, while securities transactions outside the regulated market are valid.
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