Having ended last year with losses of €981m, Novo Banco needs to stabilize its financial situation. With that in mind, it is moving ahead with its program to sell off assets including real estate and investments that could bring in around €700m. In addition to the sale of real estate assets, the institution provides a “deleveraging ordered to maximize the value” by selling positions in international business and operations and the sale of positions in restructuring funds. The also bank intends to continue with its cost optimization plan, which provides for the closure of 170 branches and a reduction of about one thousand employees bz the end of 2016. Reducing financing costs and attract new customers with low to medium risk profile are other goals. The news comes after the Bank of Portugal announced the relaunching of the sales process of the institution and after the European Commission approved the restructuring plan.
