BANCO ESPIRTO SANTO E (BKESF)

[Churak]

From Part B, item #9:


9. What consequences does the application of this resolution measure have for Banco Espírito Santo, S.A.?

The majority of the business and property of Banco Espírito Santo, S.A. was transferred to Novo Banco. S.A. Business transferred to Novo Banco, S.A. will continue to be carried out as usual.

This notwithstanding, Banco Espírito Santo, S.A. will continue to play a key role in ensuring the efficiency of the resolution measure applied by Banco de Portugal. Banco Espírito Santo, S.A. is legally required to provide all information requested by Novo Banco, S.A.

In addition, Banco de Portugal has applied the following corrective measures to Banco Espírito Santo, S.A.:

a) Prohibition to grant credit and invest funds in any types of assets, except to the extent that this investment of funds proves to be necessary for the preservation and valuation of its assets;
b) Prohibition to take deposits;
c) Waiver, for the period of one year, of compliance with the prudential rules applicable and the timely fulfilment of previously contracted obligations, except if this fulfilment is indispensible to the preservation and valuation of its assets, in which case Banco de Portugal may authorise the operations required for the purpose.

Therefore, Banco Espírito Santo, S.A. is no longer carrying out any activity, and Banco de Portugal will eventually withdraw its authorisation for exercising activity. This decision will result in an insolvency declaration that will in turn initiate Banco Espírito Santo, S.A.’s judicial liquidation proceedings. These liquidation proceedings will only focus on those liabilities and assets that have not been transferred to Novo Banco, S.A. The costs associated with these proceeding are those resulting from an insolvency proceeding and will be borne by the insolvent estate.


https://www.bportugal.pt/en-US/OBancoeoEurosistema/Esclarecimentospublicos/Pages/infobes.aspx