| Author (Corporate) | European Commission: DG Communication |
|---|---|
| Series Title | Press Release |
| Series Details | IP/14/901 (04.08.14) |
| Publication Date | 04/08/2014 |
| Content Type | News |
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The European Commission announced on the 4 August 2014 that it had found the resolution plan of the Portuguese Banco Espírito Santo S.A. (BES), including the creation of a Bridge Bank, to be in line with EU State aid rules. The measures notified by Portuguese authorities would allow the orderly resolution of the remaining bad bank and provide the bridge bank with the necessary means to maximise the value of its assets in the sale process, while limiting the distortions of competition created by the State aid granted. On the same day the Portuguese government announced it would spend €4.9bn to rescue Portuguese Banco Espírito Santo (BES), Portugal's largest listed bank. On the 30 July 2014 BES had announced losses of €3.6bn for the first six months of 2014, significantly above the foreseeable values in the light of information disclosed until then by the bank. Euro|Topics presenting summaries of articles in European newspapers on the development wrote that Portugal was bailing out the failing Banco Espírito Santo to the tune of €4.9bn. The money would come from a bank capitalisation fund boosted with money left over from the country's bailout programme. Lisbon was wrongly claiming that taxpayers would be spared, commentators criticise, and said the near bankruptcy of the bank was proof that the crisis continued in Europe's southern states. |
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| Source Link | Link to Main Source http://europa.eu/rapid/press-release_IP-14-901_en.htm |
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| Subject Categories | Internal Markets |
| Countries / Regions | Portugal |
