By Sergio Goncalves LISBON (Reuters) - Troubled Portuguese lender Banco Espirito Santo is expected to be split up into a "bad" and "good" bank under a multi-billion euro state rescue plan being hashed out by Lisbon and EU authorities, people familiar with the talks said on Sunday. The plan, aimed at saving a bank that has been engulfed by the dramatic fall of the Espirito Santo family’s business empire, 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.
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