Novo Banco €2 billion bond transfer

Overview:

• The Bank of Portugal transferred five bonds with an aggregated total of €2 billion to bad bank BES, in order to help recapitalise Novo Banco. 
• Shareholders of the bonds were left with little chance of being repaid on the bonds, and were likely to face losses. 
• The price on the bonds fell to a low of about 10 cents on the Euro, after being as high as 90 cents.
• The move is being challenged by the shareholders. 

John Crabb - Journalist