November 9, 2008

Portuguese Bank of Business (BPN)

Portuguese Bank of Business (BPN) The Portuguese government proposes to nationalize the troubled Portuguese Bank of Business (BPN), which has amassed debts of 700 million euros.

Fernando Teixeira dos Santos, the Portuguese Finance Minister reassured the public that the government will guarantee deposits in BPN (Banco Português de Negócios).

Teixeira dos Santos also stated that the Portuguese government will inject four billion euros into the banking system to improve liquidity.

BPN, which posted net profits of 56.7 million euros last year, was accused of "operations of dubious legality" by Teixeira dos Santos.

Portugal's other big banks BCP, BES and BPI, announced they would seek state guarantees to fund lending activities.

Banco Português de Negócios

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