Portugal Central Bank Official Moves to Qualm Market Fears Over Banco Espírito Santo (PT)

July 18, 2014 8:53 AM EDT
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Portugal Telecom (NYSE: PT) is lower once again Friday amid efforts from the Bank of Portugal to stem market fears.

Reports out have Bank of Portugal Governor Carlos Costa commenting that Portugal's central bank has enough capital to act as a buffer against its parent company in even the worst-case scenario.

Banco Espírito Santo should also be able to tap private investment to defend against losses should the need arise, Costa commented. "Preliminary contact between BES and international investment banks, as well as interest shown by various entities, investment funds and European banks show that it is very probable that there could be a private solution to reinforcing capital," the official said.

Costa noted that any loans provided by BES to it's majority-owned BES Angola should be paid on time.

Shares of Portugal Telecom are down 5 percent.

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