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Novo Banco: Government open to providing asset guarantee for Novo Banco sale (Jornal de Negocios)
The Portuguese government could be willing to provide an asset guarantee to sell Novo Banco, as long as the impact of the guarantee on public finances is lower than the impact of a full nationalisation of the bank.
With Lone Star reportedly willing to improve its bid for Novo and the Portuguese government reportedly open to providing the buyer with a guarantee on certain assets, the two parties appear to be getting closer to an agreement. Novo Banco bonds were 2-3pt higher yesterday after the former Socialist Party leader Marques Mendes said over the weekend that a sale of Novo Banco is imminent.
The Portuguese government could be willing to provide an asset guarantee to sell Novo Banco, as long as the impact of the guarantee on public finances is lower than the impact of a full nationalisation of the bank.
With Lone Star reportedly willing to improve its bid for Novo and the Portuguese government reportedly open to providing the buyer with a guarantee on certain assets, the two parties appear to be getting closer to an agreement. Novo Banco bonds were 2-3pt higher yesterday after the former Socialist Party leader Marques Mendes said over the weekend that a sale of Novo Banco is imminent.