Step 1 - Banco Espirito Santo bonds and stocks continue to collapse...
Step 2 - The Contagion spreads to the rest of Portugal...
- Rioforte, which controls Grupo Espirito Santo’s non-financial arm, is likely to default on 847m-euro payment due to be made to PT today, Folha de S.Paulo reports, without saying where it got the information.
- Payment is part of 897m-euro debt to PT
- Negotiations are still underway
- Rioforte has been trying to sell assets over last few days to enable it to make the payment
- Co. has potential to raise 300m euros from sales of assets, including Tivoli hotel chain
- Rioforte, PT seek solution to enable loan payment, without changing terms of merger w/Oi
Step 3 - Credit Creation is collapsing as business lending plunges by its most on record...
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But apart from that Portugal is fixed
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