Portugal to bail out BES

By AFP

In intervening to deal with the ailing bank, which recorded first-half losses of €3. 57bn last week, the Lisbon government is seeking to avoid contamination throughout its fragile economy and into the wider eurozone. "There was an urgent need to adopt a solution to guarantee the protection of deposits and assure the stability of the banking system," Bank of Portugal governor Mr Costa said, evoking the risk of a payment default by BES, which would endanger Portugal's financial system.

Read more here: Business Spectator

    

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