Portuguese government will save Banif

Portuguese government will save Banif

The Portuguese government will save even one of the biggest banks in the country – Banco Internacional do Funchal (Banif), as it will flow into the state aid of 2.2 billion. Euros and will differentiate its assets into “good” and “bad” bank. Healthy part of the business will be acquired by Spanish financial group Santander against 150 mln. Euros. This is the second time within 18 months that Portugal pour billions to rescue troubled lender recalls Financial Times.

“High price”

The new Socialist Prime Minister of the country Antonio Costa said that the rescue of Banif with state funds would require “high cost to taxpayers,” but has the advantage of being a “final decision”. On Monday, the bank’s branches will operate as usual, he said.

Rescue Plan provides shareholders and junior creditors to take losses of about restructuring. Acceptance comes after in August 2014 Banco Espírito Santo (BES), which was once the largest publicly traded bank in the country was saved 4.9 billion. Euros. Healthy her assets were split into a new financial institution – Novo Banco, which is still seeking a buyer, recalls FT.

In the popular Sunday night message from the Bank of Portugal announced that the rescue of Banif will include “a general public support” in the amount of 2.25 billion. Euros with which to cover “unforeseen future costs.” Most of them – 1.76 billion. Euros will come directly from the state budget and the remaining 489 mln. Euros will come from local funds to rescue failing banks, in which all financial institutions in the country contribute.

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