sovereign implications


Sovereign implications of the Espirito Santo saga

LONDON| By Barclays’ analysts | From the point of view of the banking system as a whole, the sovereign financial implications of Espirito Santo’s affair are rather limited. 
The sovereign has a relatively comfortable cash position and sufficient bank recapitalization funds. Specifically, the government estimates gross funding needs for 2014 of EUR13bn. At the same time, economic activity in Portugal is to expand by nearly 1% this year.