The Bank of Portugal has rejected a plan put forward by the country's stock market regulator, which had been designed to deal with the 2,000 depositors of Novo Banco who lost money when the bank collapsed; the central bank said that the plan is 'not feasible'. The plan suggested by Taveras, the head of the regulator, involved exchanging the debt held in Grupo Espírito Santo companies for paper held in Banco Espirito Santo. Reports suggest that the plan was deemed not feasible because it would hurt the value of Banco Espirito Santo, which the Bank of Portugal is trying to sell for the highest price possible.
The Bank of Portugal has rejected a plan put forward by the country's stock market regulator, which had been designed to deal with the 2,000 depositors of Banco Espirito Santo who lost money when the bank collapsed; the central bank said that the plan is 'not feasible'. The plan suggested by Taveras, the head of the regulator, involved exchanging the debt held in Grupo Espírito Santo companies for paper held in Novo Banco. Reports suggest that the plan was deemed not feasible because it would hurt the value of Novo Banco, which the Bank of Portugal is trying to sell for the highest price possible.