Salvaged Portuguese bank posts $1BN loss, making sale harder
{{#rendered}} {{/rendered}}A Portuguese bank salvaged from the collapse of a major lender has reported losses of 981 million euros ($1 billion) in 2015, casting a cloud over the government's attempts to sell it.
Novo Banco, a so-called good bank that emerged from the surprise 2014 bankruptcy of Banco Espirito Santo, said Wednesday legacy debts soured its performance.
The bank last year controversially transferred some 2 billion euros of debt back to Banco Espirito Santo, which is being wound up, to help its balance sheet.
{{#rendered}} {{/rendered}}Novo Banco received 4.9 billion euros to keep it afloat. The government hopes to recoup that by selling the bank, but a first attempt last September failed when the Bank of Portugal said the offers were too low. It is expected to try again in coming months.