Bank of Portugal head says Banco Espirito Santo to be recapitalised via bank resolution fund

Bank of Portugal head says Banco Espirito Santo to be recapitalised via bank resolution fund

Also:

• Says Banco Espirito Santo to be split in “good” and “bad bank”
• New, healthy Banco Espirito Santo to have 4.9 bln euro capital, subscribed by resolution fund
• Says Banco Espirito Santo deposits are guaranteed
• Bailout line to be used to finance bank resolution fund for Banco Espirito Santo
• Says resolution plan carries no cost to public finances, taxpayers
• Says new Banco Espirito Santo starts with common equity tier 1 ratio of 8.5 pct, above minimum levels
• Says risks linked to Esiprito Santo group stay with bad bank
• Current Banco Espirito Santo shareholders, subordinated debt holders stay with bad bank’s risks

Comments from Bank of Portugal Governor Carlos Costa

Headlines via Reuters

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If they were writing this song today it would be called Bailout. Only have to change one word in the lyrics, too: