Portugal’s central bank has announced a plan to rescue the troubled lender Banco Espirito Santo (BES).
The group will be split into two – a “good bank” with the healthy assets and a “bad bank” with the riskier ones.
The “good bank”, which will be called Novo Banco, will be loaned 4.9bn euros ($6.6bn; £3.9bn) from what is left of Portugal’s bailout fund.
The move had been expected after BES on Friday reported a record loss of 3.6bn euros for the first half of the year.
Since June, when concerns about the financial health of the company first came to light, its shares have plunged 89%.
via BBC
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Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
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