Bank of Portugal urges improved health for private bank

LISBON, July 19 (Xinhua): Bank of Portugal Governor Carlos Costa encouraged new shareholders to restore the financial health of bank Banco Espirito Santo (BES)'s structure on Friday, as Portugal's largest private bank tries to calm investors.
"It would be good for everyone to restore the shareholder structure," he said at the parliament.
He said new shareholders were required to "bring back the bank's good reputation."
He added that he hoped there were shareholders interested and that it took place "as soon as possible," pointing out that it would be "in everyone's interest."
He also said he hoped a recapitalisation fund would be the "last resort" and pointed out that the Angolan National Bank had guaranteed the solvency of the institution, which he said was "favourable."
Last Thursday it emerged that the bank's overall holding company, Espirito Santo International (ESI), was covering a hole of at least 1 billion euros (US$1.35 billion) in its accounts.
The bank accelerated the appointment of new executives with Vitor Bento replacing Ricardo Salgado as the bank's new chief executive.
Costa has sought calm among investors, insisting that the bank can deal with any losses and that investors won't have to bear the bank's troubles.
The government has echoed the Central Bank, saying BES doesn't need state support and claiming the bank's capital is "solid."