ISDA delays BES ruling as Novo Banco looks to be saddled with Angolan loans

The International Swaps and Derivatives Association on Wednesday delayed its ruling on whether $900m of credit default swaps relating to Banco Espírito Santo would transfer to the newly created Novo Banco, or remain in the rump bad bank. While chances of recovery of sub debt investments seem slim, BES’s creditors may be able to take some solace from the apparent transfer of loans to BES Angola to bridge bank Banco Novo.