Espirito Santo Creditors Doubt Containment on Missed Payment
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Central bank assurances that Portugal’s Banco Espirito Santo SA is protected after a parent company missed short-term debt payments are failing to ease creditor concern they may also suffer losses.
The bank’s shares were suspended after tumbling more than 17 percent as its bonds dropped to record lows. Portuguese government debt led declines in securities from Europe’s most indebted nations, while banks dragged stocks in the region down more than 1 percent.