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Portugal to rescue BES with 4.9 bln euros using bailout funds
August 3, 2014 / 10:30 PM / 3 years ago

Portugal to rescue BES with 4.9 bln euros using bailout funds

LISBON, Aug 3 (Reuters) - Portugal’s central bank said on Sunday it decided to rescue troubled lender Banco Espirito Santo in a 4.9 billion euro recapitalisation to be pumped into the healthy part of the bank that will be separated from its compromised assets.

The money comes mostly from the country’s international bailout, which had a 6.4 billion euro line available for bank recapitalisation, via a bank resolution fund set up by Portugal in 2012, Bank of Portugal Governor Carlos Costa said.

Current shareholders in BES and holders of subordinated debt will be responsible for the risks in the “bad bank” mainly associated the crumbling business empire of the bank’s founding Espirito Santo family. (Reporting By Andrei Khalip; Editing by Sandra Maler)

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