BRUSSELS Aug 4 The European Commission said on
Sunday that Portugal's planned 4.9 billion euro ($6.58 billion)
rescue of Banco Espirito Santo (BES) was in line with EU
state aid rules.
"The adoption of this resolution measure is adequate to
restore confidence in financial stability and to ensure the
continuity of services and avoid potential adverse systemic
effects," the Commission said in a statement.
The Commission said a disorderly resolution of BES could
have created a serious disturbance in the Portugues economy and
that the creation of a temporary credit institution, holding
deposits, senior debt and most of the assets, was a suitable
To limit market distortions, the latter's new business would
be limited, it said.
($1 = 0.7450 Euros)
(Reporting By Philip Blenkinsop)