Sale of Portugal's Novo Banco must not impact country's public accounts: ministry

The pending sale of Portugal's Novo Banco bank must not have an impact on the country's public accounts, Portugal's Ministry of Finance said in a statement Thursday.

According to the ministry, there were several contenders negotiating to buy the bank.

"The government has received information from the Bank of Portugal regarding the sale process of Novo Banco. While it is carefully analysing the information it has received, the government highlights the fact that according to the Bank of Portugal, there are several proposals for the acquisition of Novo Banco," the statement read.

This comes a day after the Bank of Portugal said a proposal by American fund Lone Star was the most favorable bid, but didn't rule out further negotiations with private bank China Minsheng, and private equity groups Apollo Global Management and Centerbridge.

While the Bank of Portugal has said that Lone Star's offer to buy the "good bank", which was saved from the collapse of Banco Espirito Santo, was probably the best option to ensure the financial stability of the financial system, the authorities are weary of Lone Star demanding a state guarantee, which could mean a potential cost for taxpayers.

The ministry of finance said the potential investors were willing to negotiate to overcome such constraints. Endit