ECB Financing to Portuguese Banks Falls to Nine-Month Low

The European Central Bank’s financing to Portuguese lenders fell to the lowest level in nine months in November.

ECB financing declined to 54.61 billion euros ($70.5 billion) from 56.09 billion euros in October, the Lisbon-based Bank of Portugal said today on its website. That’s the lowest since February, when financing was at 47.55 billion euros.

Portugal received a bailout in April 2011 under an aid plan that earmarked as much as 12 billion euros for the recapitalization of the country’s lenders. Under the program, lenders were required to raise core Tier 1 capital ratios to 9 percent by the end of 2011 and 10 percent by the end of 2012.

Banco Espirito Santo SA (BES), Portugal’s biggest publicly traded bank, in October sold the country’s first benchmark senior bank bonds in more than two and a half years.

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

To contact the editor responsible for this story: Stephen Foxwell at sfoxwell@bloomberg.net

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