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4 Aug 2014
Banco Espirito Santo to be split into 'good' and 'bad' banks
FXStreet (Bali) - Portuguese lender Banco Espirito Santo is about to undergo a split that will separate the bank's "bad" and "good" assets into two different entities, Reuters reports.
The decision comes "under a multi-billion euro state rescue plan being hashed out by Lisbon and EU authorities, people familiar with the talks said on Sunday", Reuters notes.
The plan, Reuters comments, "includes using at least half of the 6 billion euros left from Portugal’s recently exited international bailout program, these sources said."
"The bailout money will be used to finance a special bank resolution fund set up by Portugal in 2012 that will in turn inject money into the new Banco Espirito Santo, or BES, "good bank", these people said", Reuters adds.
The decision comes "under a multi-billion euro state rescue plan being hashed out by Lisbon and EU authorities, people familiar with the talks said on Sunday", Reuters notes.
The plan, Reuters comments, "includes using at least half of the 6 billion euros left from Portugal’s recently exited international bailout program, these sources said."
"The bailout money will be used to finance a special bank resolution fund set up by Portugal in 2012 that will in turn inject money into the new Banco Espirito Santo, or BES, "good bank", these people said", Reuters adds.