RPT-UPDATE 2-Portugal may use state funds as part of BES hike, shares plunge

viernes 1 de agosto de 2014 15:38 GYT
 

(Repeats to add bullet points)

* State aid pondered to complement cash call

* BES still working on fully private option

* Source says 3 bln euros required, hard to avoid state aid

By Sergio Goncalves

LISBON, Aug 1 (Reuters) - Portuguese authorities are considering using public funds to help keep the country's largest listed bank solvent, sources said on Friday, as the lender's plunging shares put its plan to raise new money from investors in doubt.

Banco Espirito Santo was still trying to convince investors to take stakes and shore up its finances in a fully private capital increase that should kick off soon.

Two sources with knowledge of the situation told Reuters, however, that Portuguese authorities consider the use of a "mixed solution", combining state aid with private capital, may be hard to avoid after the bank's massive loss to clean up its balance sheet, which some analysts fear could still be incomplete.

One source said BES is likely to need another 3 billion euros ($4 billion) after the 3.6 billion euro half-year loss it posted on Wednesday wiped out its capital buffers and reduced its solvency ratio below that required by the Bank of Portugal.   Continuación...