Bailouts Damaged Market Confidence in Banks, Salgado Tells FT

Banco Espirito Santo SA Chief Executive Officer Ricardo Salgado said Europe’s bailouts in Ireland and Greece damaged market confidence in the countries’ banking sectors and had “poor results,” the Financial Times reported, citing an interview.

The interests rates “were too high” and the debt had “too short a maturity,” Salgado said, according to the newspaper. Portugal can avoid a European bailout as long as the European Central Bank continues to provide liquidity to its banks, Salgado also said, according to the FT.