Novo Banco chairman, António Ramalho, told the workers’ commission on Wednesday that the agreement with Brussels foresaw reducing the network from 550 branches at the end of this year, to 475 by next June.
When the state guarantees for Novo Banco were extended last December, the deadline for selling it was extended until August 2017, and the European Commission imposed “new remedies”.
Apart from closing down the branches, the bank also needs to cut a further 500 jobs over and above the 1,000 that have already gone.
In December 2015, Novo Banco had 637 branches.
The plan also foresees a €230 million cut in operating costs in the first half of 2017, a larger amount than the cut made this year of €150 million.