Portugal’s BPI Bank Asks For 1.3 Bln Aid

The Portuguese bank BPI has reportedly asked for 1.3 billion euros in public aid to comply with the principles laid out by the European Banking Authority, as the financial crisis in the euro zone seems to be deepening.

Banco BPI, which is Portugal’s third largest listed bank, said on Monday that it would also raise 200 million euros from private investors. 

The news comes as the Portuguese banks have been struggling under the country’s debt crisis, leading the government to ask for a 78-billion-euro bailout last year. 

The 1.5bn euro recapitalization plan would allow Banco BPI to meet higher capital conditions from the European Banking Authority, and secure a core Tier 1 capital ratio of 9% by the end of this month, the bank said in a press release. 

Meanwhile, Portugal’s Finance Ministry said on Monday that the country was ready to inject about 6.65 billion euros into three of its largest lenders, including private banks BCP and BPI, and the state-owned bank CGD, in a bid to strengthen the banking sector. 

Portugal is the third country to succumb to financial troubles in the euro zone debt crisis and seek funding assistance after Greece and Ireland. The country received an EU-International Monetary Fund aid package in exchange for a commitment to impose austerity measures and reform its economy, Press TV reported.