- Title: PORTUGAL-BANK/SCUFFLES Clients of Portugal's collapsed bank scuffle with police
- Date: 10th August 2015
- Summary: PROTESTERS IN FRONT OF NOVO BANCO HEADQUARTERS / RIOT POLICE PROTESTER HOLDING SWITZERLAND FLAG AND BLOWING WHISTLE PROTESTER BURNING PICTURE OF BANK OF PORTUGAL GOVERNOR, CARLOS COSTA PROTESTERS MARCHING IN LISBON MAIN AVENUE, AVENIDA DA LIBERDADE PROTESTERS MARCHING IN TRAFFIC CARS TURNING AROUND PROTESTER PUSHING POLICE CAR / PROTESTER ON TOP OF POLICE CAR POLICE LOOKIN
- Embargoed: 25th August 2015 13:00
- Keywords:
- Location: Portugal
- Country: Portugal
- Topics: General
- Reuters ID: LVA3D74DI9BIJRVDWJI2P9T7S01P
- Aspect Ratio: 16:9
- Story Text: Hundreds of clients of Portugal's state-rescued Banco Espirito Santo (BES) blocked Lisbon's main thoroughfare and some scuffled with police on Monday (August 10) to demand payback of millions of euros invested in the debt of the bank's founding family.
The association of the victims of BES/Novo Banco, many of whom have lost their life savings, argues that the bank had fraudulently sold them the debt of the now bankrupt Espirito Santo family's business empire as if it were long-term deposits guaranteed by the bank.
However, when the state last August rescued the country's second-largest lender by injecting 4.9 billion euros into a new, "good bank" Novo Banco and keeping the toxic assets at the "bad bank" BES that is to be wound down, defaulted commercial paper of the Espirito Santo Group was left with the bad bank.
BES client Manuel Rocha said he has lost more than 120,000 euros and urged for a solution.
"They have to find a solution before they sell the bank, it's more than enough time for a solution. They said in January till March that the problem would be solved, announced on the internet that we would be reimbursed with interest -- they are not honest people," he said.
A judge last month ordered former BES CEO Ricardo Salgado under house arrest as prosecutors named him a formal suspect for fraud, corruption in the private sector and money laundering.
The Bank of Portugal has said that deposit guarantees do not apply to that investment, but the authorities have said they would try to negotiate some form of partial compensation for around 2,500 BES clients who had been sold over 500 million euros in commercial paper via the bank's branches.
"The Bank of Portugal is guilty!" and "We want our savings!" read some of the banners carried by protesters.
"We won't stop until everything is paid," many chanted.
BES client Antonio Sousa feared he had lost his investment.
"None, zero, they say they will give us sixty percent but they don't give us a date, and if they don't sell the bank till August 16, 2016 it's considered insolvent, so what they have been promising us is zero," said Sousa -- a Portuguese who lives in Germany and lost 124,000 euros in BES.
Some stepped on the Portuguese flag. Police in riot gear had to intervene when protesters tried to storm into Novo Banco headquarters on the Avenida Liberdade thoroughfare.
At least one person was injured in pushing and shoving that followed.
The Bank of Portugal last week received an improved offer from one of three bidders for Novo Banco and will evaluate all three bids in the coming weeks.
Sources familiar with the process have said China's Fosun International Ltd and privately owned Chinese insurer Anbang have made offers, as has U.S. fund Apollo Global Management LLC. - Copyright Holder: REUTERS
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