Portugal To Keep 3 Big Banks Going With $8.2B

By Eleazar David Meléndez | June 04 2012 9:38 AM

Portugal will give €6.6 billion ($8.2 billion) to its three largest banks to help them beef up their balance sheets. Receiving the capital injection are two private banks, Banco Comercial Português and Banco BPI, and state-owned Caixa Geral de Depositos, officials said Monday.

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The purposed of the new round of funding is to help those banks meet strict capital ratio requirements being imposed by the European Banking Authority. The latest bailout of the European banking industry is being provided from monies disbursed by the International Monetary Fund in 2011. Portugal has run through approximately three-fourths of the €78 billion it was provided with.