Agreement imminent between the government and the victims of the BES – Observer

The government is expected to announce by the end of this week a final agreement with the Association of Outraged and Deceived the Commercial Paper of the BES. When the Observer found, the final conditions are already closed and are the following:

• investors who have invested up to € 500,000 will receive 75% of the invested capital with a ceiling of 250.000 € by the application;
• investors who have applied to values of more than 500,000 euros will receive 50% of the capital invested.

These values should be paid more than the 2,100 customers in several tranches during the two years between 2017 and 2019, while the same will be funded, as was already known, by a special fund that will be constituted for the purpose.

The first tranche will represent nearly 30% of the total that each customer will be entitled to receive and shall be paid between march and July 2017.

this Will be a new institution that contracts with a bank loan that will pay for the victims of the BES. This loan should have a guaranteed of the State and a counter-guarantee fund for the resolution of the BES. This is the way found to prevent this operation has implications on the budget deficit.

After conducting more than 40 meetings, the Government, the Bank of Portugal and the association that represents the victims of BES have also agreed that these conditions only apply to customers under the following conditions:

• Customers are not qualified;
• Customers who are subscribed only commercial paper ESI and Rio Forte;
• Customers who have purchased these products to the branches national of BES and the bank’s BEST — which excludes clients who have invested through branches or subsidiaries outside of the BES in Switzerland, France, Luxembourg, Panama, Dubai, etc.

In terms of the total amount invested by customers of the BES, it is estimated that in the case of a total value of 432 million euros placed in commercial paper of companies, ESI and Rioforte.

To be applied, these conditions will be accepted by more than 50% of the clients that are part of the 2,100 customers affected.

Text of Luis Rosa and Edgar Guerra.