An EC spokesman told Lusa News Agency yesterday that an agreement had been reached with Portuguese authorities on Tuesday night about how to recapitalise CGD. The spokesman said Portuguese authorities are to inject €2.7 billion into CGD, transfer its ParCaixa shares to the bank and convert €900 million in CoCo bonds into capital.

Portugal’s Finance Minister Mário Centeno has said the injection into CGD will have implications on the levels of Public Debt.