The European Commission gave its stamp of approval to the restructuring plan proposed by Lisbon-based Banco Comercial Portugues (BCP). Under the plan, BCP would dispose of its assets in Romania and Greece. BCP would keep its Polish unit, Bank Millenium.
Portugal's largest listed bank, BCP received EUR 2 billion or USD 4 billion last year when the European Union and the International Monetary Fund bailed out Portugal last year. Of the EUR 78 billion bailout fund obtained by Portugal, BCP received the EUR 2 billion in convertible bonds for recapitalization.
In return for the aid, BCP must cut costs and dispose of some of its assets. Since BCP's Polish unit is seen as a "core operation" BCP said they are not under pressure to sell it. In a statement, the bank said, "There is no commitment to sell it unless the amount of convertible bonds to be paid (by BCP) in December 2016 exceeds 700 million euros."
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