Portugal's BCP pays back 400 mln euros in state loans

LISBON Tue May 27, 2014 12:09pm EDT

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LISBON May 27 (Reuters) - Portugal's second-largest listed bank Millennium bcp said on Tuesday it had repaid to the state 400 million euros in loans held in so-called contingent convertible bonds (CoCos) that have weighed on the bank's bottom line due to high interest charged.

Portugal's banks took the loans during the country's debt crisis and the financing was provided by the government as one part of Lisbon's 78-billion-euro bailout by the European Union and International Monetary Fund that ended this month.

BCP originally received 3 billion euros and it is the first payment it makes, following other banks' suit. (Reporting By Andrei Khalip, editing by Axel Bugge)