Relationship between banks BES and BES Angola clarified soon

26 August 2014

The deputy governor of the National Bank of Angola (BNA), Ricardo de Abreu, has said that a definition of the relationship between Banco Espírito Santo (BES) Portuguese and Angolan BESA, the latter the subject of “reorganization measures,” would be made in the “coming weeks,”

The former BES bank provided BES Angola with a loan of 3.3 billion euros, which was placed in Novo Banco, also known as the “good” bank following the emergency intervention of the Bank of Portugal in the BES bank.

As BESA has been the target of an intervention by the Angolan central bank since the beginning of August, with the appointment of an interim board of directors, payment of all loans has been suspended in accordance with Article 117 of the Angola Financial Institutions Act (Law 13/05).

This intervention, involving reorganization measures at the bank, which is 55.71 percent-owned by Portuguese BES, may extend for a year and, as the deputy governor recalled Monday, the solution was agreed between the two countries.

Information made ​​public in Portugal and Angola in recent weeks points to non-performing loans at BESA amounting to US$5.7 billion. (macauhub/AO/PT)