Portugal starts recapitalisation of state-owned lender CGD

Portugal started a planned recapitalisation of state-owned lender CGD on Wednesday by converting 945 million euros of contingent convertible bonds (CoCo) into equity and transferring 500 euros of shares to the bank, the finance ministry said.

The recapitalisation, which will include a direct capital injection by the state of up to 2.7 billion euros in the second phase, was agreed with the European Commission in August.

The ministry said in a statement the convertible bonds were transferred to CGD on Wednesday as was the 500 million euros of CGD shares held by state holding company ParCaixa…

Read more : Euronews, 04.01.2017