commercial solution for “injured” emigrants was completed, says New Bank – publico

 
         

                 

                         
                     

                 

 
 

The New Bank said Tuesday in a statement to the market that it has completed the implementation of the business solution which was accepted by 6,000 migrants clients who had invested about 500 million euros in the former BES savings products.

These migrants had applied savings products marketed by Banco Espírito Santo (BES) – savings Plus, Top Income and EuroAforro8 – who were at risk when the bank’s fall led by Ricardo Salgado, in summer 2014.

in an effort to minimize losses, the New Bank – the bridge bank that got the least problematic assets BES – created commercial solutions proposed to customers of those products, emigrants, which were accepted by about 80%.

According to the information now sent to the Portuguese Securities Market Commission (CMVM), “on 19 April, the settlement was in kind of preference shares of the vehicle EuroAforro 8 and later delivery of the senior obligations of the New Bank and constitution of time deposits applicable under the commercial solution, having been fully implemented business solution regarding this vehicle. “

in the month of June” was finalized implementation process of commercial solution of the remaining vehicles listed above and customers that joined the commercial solution received the senior obligations of the New Bank and their deposits were made. “

the New Bank says it is This completes the “implementation of the business solution” which, according to official sources, covered “investments in the amount of 500 million euros and expects to recover up to 90% of invested capital.”
As for customers who did not accept the commercial proposal, they may still exercise the choice of settlement in kind of preference shares “in the following years,” said the institution.

according to the explanation of the New Bank, the commercial solution provides, at first, the constitution deposit not Callable term for two years with an annual rate Nominal Gross (TANB) of 1.5% and the transfer of obligations amounting to 60% of capital invested, as well as the constitution of another deposit guarantee recovery in six years 90% of invested capital.

As mentioned above, despite the commercial solution proposed by the New Bank, not all emigrants customers accepted. Indeed, the Movement Association of Emigrants Portuguese aggrieved (AMELP) recommended that its members do not subscribe the proposal, considering that it was not fair and did not fit the profile of these customers, since it implied the subscription of long-term obligations of the New Bank and the term deposits will be subject to the value of these obligations.

AMELP also criticized that the 400 people who signed up to the EG Premium and Euro Aforro10 products has not been offered any solution, the only being alternative to claim the money in court. Already the New Bank argues that it was not possible to offer a solution in this case because of the type of financial instruments covered by these products.