Espirito Santo group sells private bank assets as holding put under supervision

The main shareholder of troubled Portuguese bank Banco Espirito Santo (BES) was placed in receivership on Tuesday as the parent group announced it had sold most of its Swiss-based activities. Luxembourg's district court in a statement said it had agreed to a Friday request from Espirito Santo International (ESI) that it be placed under ‘controlled management’. Portugal has been thrown into turmoil since allegations emerged of accounting irregularities in ESI, owned by the high-profile Espirito Santo family, cast doubt on the strength of its economy. Lisbon has admitted the crisis engulfing the giant Espirito Santo group could affect Portugal's recovery after the country emerged from an international bailout in May. President Anibal Cavaco Silva said the problems affecting the group ‘could have a certain affect on the real economy ... and its creditors could be confronted with serious difficulties’. Portuguese authorities have also said they had opened several investigations into possible criminal offences related to the group and its entities, according to AFP.