Portugal's PM: Sale of bank Novo Banco to U.S. fund not to affect tax payers
Xinhua, April 1, 2017 Adjust font size:
Portuguese Prime Minister Antonio Costa said Friday that the sale of state-rescued Novo Banco to Lone Star of the United States will not have an impact on public accounts or on tax payers.
A "balanced solution" had been reached, he said.X Nationalizing the bank would have entailed an injection of around 4 billion euros (4.26 billion U.S. dollars), while the sale meant the state would not have to pay anything at all, Costa told a press conference.
"Novo Banco will continue to carry its role of financing the (Portuguese) economy," Costa said.
Lone Star, a U.S. private fund, will acquire 75 percent of Novo Banco in exchange for a capital injection of 1 billion euros (1.06 billion dollars). Lone Star will first pay 750 million euros and the remaining 250 million euros will be disbursed by 2020. Endi