EU, Portugal agree on recapitalization for bank CGD

August 24, 2016 10:45 AM

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EU, Portugal agree on recapitalization for bank CGD

BRUSSELS The European Commission said it had reached an agreement in principle with Portugal over the recapitalization on market terms of Portuguese state-owned bank Caixa Geral de Depositos - the country's largest lender.

Under the terms of the deal, Portugal will inject up to 2.7 billion euros ($3.05 billion) in capital into CGD, transfer its ParCaixa shares to CGD and convert 900 million euros of contingent instruments into equity. CGD has also committed to raising 1 billion euros of capital of subordinated debt.

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