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Clifford Chance

Clifford Chance


Credit Default Swaps, Governmental Intervention and the ISDA Determinations Committee: The Novo Banco Experience

25 February 2016

On 15 February 2016, the External Review Panel of the ISDA EMEA Determinations Committee handed down its first ever decision. The Panel had been asked to determine whether the announcement by the Bank of Portugal that the liability of Novo Banco, SA under certain bonds would be transferred so that they became liabilities of Banco Espirito Santo, SA constituted or resulted in a Governmental Intervention Credit Event under the ISDA 2014 Credit Derivatives Definitions. The Panel unanimously concluded that the answer to this question was "No".

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