The Lisbon Administrative Court dismissed a complaint by international funds that sought more than €2 billion in compensation over the transfer of BES bonds to the 'bad bank'.
Bank of Portugal wins legal battle against international funds
Monday, 12 January 2026RSS
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Context & Explainers
The BES resolution was the August 2014 intervention by Banco de Portugal that split Banco Espírito Santo into a ‘good bank’ (transferring viable assets to what became Novo Banco) and a ‘bad bank’ holding toxic assets, with shareholders and many bondholders taking losses. The move aimed to stabilise the financial system but later led to legal claims from international funds and long-running litigation.
