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Novo Banco threatens swindled BES depositors with legal action

novobancoNovo Banco has reiterated that it will not be paying a cent to those BES customers who bought commercial paper in Espírito Santo Group companies even though these were sold in BES branches on the recommendation of branch staff.

The bank led by Eduardo Stock da Cunha says it "is not independent" and has to comply with the terms of the BES resolution imposed by the regulator, the Bank of Portugal.

Novo Banco is going one stage further to annoy BES customers and has threatened to start to prosecute those who insist on picketing and occupying Novo Banco branches in protest for the €550 million they have lost.

The repayment of these 2,500 BES customers has been passed around the block as the financial market regulator (CMVM) says the repayment should be through the Bank of Portugal, the Bank of Portugal says very little and Novo Banco says it is nothing to do with it.

Novo Banco today conveniently stated that is a "bridge bank and has no autonomy to decide and implement proposals to remedy or compensate for the failure of such debt instruments."

Furthermore, the bank is obligated "to respect the terms of the resolution as applied to Banco Espírito Santo by the Bank of Portugal."

Novo Banco also warns of legal action for those who are engaged in illegitimate demonstrations and raids on branches in protest.

"The injured persons have rights that must be respected, but cannot act outside the framework of the law and against those who are not able to sort out their problems, said Stock da Cunha from Novo Banco not for a moment considering that he may be acting outside the law before the judges have decided who is responsible for repaying these BES customers, if anyone.

Therefore, Novo Banco may "adopt appropriate legal measures, as well as continue to support without limitation its employees, particularly those who are threatened."

Those who have lost €550 million will now be taken to court for protesting because Novo Banco unilaterally has decided that their plight is not its fault.