Court backs Banco de Portugal over BES investor claims
A Lisbon Administrative and Tax Court ruled in favour of Banco de Portugal in a test case brought by international funds (including names reported such as BlackRock and PIMCO) challenging the BES resolution, dismissing compensation claims that exceeded €2 billion. The ruling clears the central bank of the claims in this case and reduces a legal overhang for regulators and public finances, though other suits may persist. For expats in finance or holding Portuguese-linked securities, the decision matters for market confidence and signals lower immediate risk of a large central-bank payout related to BES.
Banco de Portugal is Portugal’s central bank, founded in 1846, responsible for banking supervision, financial stability and representing Portugal within the European System of Central Banks. For expats, it matters because it regulates banks and financial resolutions, influences monetary and payment rules, and can be involved in legal disputes with international investors.
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.
