Market fears endanger Italian and Portuguese bank sell-offs
Haircut on senior bondholders in Portuguese bank may discourage buyers
The Bank of Italy embarked on the next stage of the sale of four 'bridge banks' on January 19, while the Bank of Portugal announced last week it would re-start the process of selling Novo Banco.
Analysts, however, expressed fears the haircut imposed on bondholders in Novo Banco, as well as similar haircuts imposed by Italian authorities, made successful sell-offs less likely. This, they said, could be a factor in the sale of both the Portuguese and Italian institutions.
Novo Banco is the ‘good
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