Carlos Costa and Banco Espirito Santo

Banco Espirito Santo: "The plan carries no risk to public finances or taxpayers," said Carlos Costa, Portugals central bank governor. "There was an urgent need to adopt a solution to guarantee the protection of deposits and assure the stability of the banking system.", according to The Independent. Portugal, which exited its international bailout programme in May after three years of budget cuts, will use leftover funds to assist Banco Espirito Santo, which reported a record 3.5 billion euros net loss last week and The bank will be split up into a "good" and "bad" bank that will protect taxpayers and depositors, but junior bondholders and shareholders will be wiped out. The "bad bank" will hold toxic assets and the "good bank", renamed Novo Banco- Portuguese for "new bank"-, will receive a 4.9 billion euros capital injection from Portugals bailout fund, provided by the European Union and the International Monetary Fund IMF back in 2011. (news.financializer.com). As reported in the news.