Angola revokes BES guarantee as sub holders brace for more bad news

Bailed out Portuguese lender Banco Espírito Santo has been hit with fresh bad news, as Angolan authorities announced they would no longer guarantee the loan book of BES’s subsidiary in the country. Meanwhile, buyers of credit default swaps (CDS) on BES’s sub paper are expected to be told that the protection contracts are worthless due to the nature of the breakup of the bank.