Banco Espírito Santo secretly lent money to its controlling shareholder for two years, documents have revealed – raising fresh questions over the Bank of Portugal’s supervision of a lender that went on to suffer one of Europe’s largest financial collapses.
To understand why entrepreneurship, or setting up a business, is now so popular in Portugal, you only need a quick reminder of how bad unemployment remains in the country, even though it came out of recession in 2013.
Portugal will spend 4.9 billion euros ($6.58 billion) to rescue its largest listed bank, testing the euro zone's resilience to another banking crisis just months after Lisbon exited an international bailout.
Portugal’s central bank stepped up efforts to clean up the troubled lender Banco Espírito Santo and end its family control after the bank reported a stunning first-half loss of $4.8 billion that will force it to raise more capital.
Portugal coach Paulo Bento has left Cristiano Ronaldo out of the squad for their upcoming Euro 2016 qualifier on Sept. 7 vs. Albania, saying the national captain is not fit enough to compete, even though he has started the season featuring regularly for Real Madrid.
Lisbon real estate agent Paulo Silva says Portugal’s booming high-end property market has a Frenchman to thank: François Hollande. 'The French president’s taxes are prompting many to flee their country', says Silva, who heads real estate agency Aguirre Newman. 'Many of these wealthy French are coming to Portugal to take advantage of tax benefits that are better than in other countries'.
Two linked companies, Espirito Santo Group and RioForte, have applied to Luxembourg courts for protection from their creditors in recent days. The Portuguese family dynasty that owns both companies is at a crossroads.