Portugal Central Bank announced on 3 August its plan for the rescue of Banco Espirito Santo (BES). BES “Is accused of persuing ‘fraudulent financial transactions’” writes Jornal de Notícias, and has been involved in many recent scandals that led investors do flee. To the point that losses in 2014 first half were €3.58 billion, while shares fell by 73 per cent last week.
BES will be split in two entities, explains the Lisbon daily: Novo Banco, which will get the bank’s “healthy” assets and where the state will inject €4.4 billion of public funds taken from the ECB, EU, IMF Troika, plus €380 million from the Portuguese Banking Resolution Fund and €120 million from other banks; a “bad bank” will contain BES’ toxic assets.
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