Bloomberg News

Portuguese Banks Need 6.95 Billion Euros to Meet EBA’s Rules

December 09, 2011

Dec. 8 (Bloomberg) -- Portuguese banks need to raise 6.95 billion euros ($9.3 billion) to meet capital rules set by the European Banking Authority, according to a statement posted on the Bank of Portugal’s website.

That’s less than an October estimate of 7.8 billion euros. The European regulator has ordered banks to reach a 9 percent target for core Tier 1 capital after marking their holding of sovereign debt to market prices.

The Bank of Portugal said the country’s lenders have to present capitalization plans by Jan. 20 to provide details on how they will meet their capital needs. Portuguese banks have the possibility of using a 12 billion-euro recapitalization facility that’s part of the country’s financial assistance program.

To contact the reporter on this story: Joao Lima in Lisbon at jlima1@bloomberg.net

To contact the editor responsible for this story: Anabela Reis at areis1@bloomberg.net


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