Shares in one of Portugal’s biggest banks were suspend today (July 10) after the shares fell by 17 per cent following fears concerning accounting irregularities and the financial health of one of its parent companies, Espirito Santo Financial Group.
The fears resulted in the Lisbon stock exchange falling more than 4 per cent and the Madrid’s IBEX 2.7 per cent. The Paris Cac 40 and Frankfurt’s Dax saw a drop of more than 1.8 per cent. Wall Street opened with the Dow Jones falling 150 points.
Concerns about financial practices were reported at the end of last year, which resulted in the Portugal central bank ordering an audit into the group’s accounts. “Serious” accounting irregularities were uncovered.
While the Portuguese government has said the bank and the public finances are not at risk from problems from the Luxembourg registered company, concerns remain.
BES shares suspended following drop of 17 per cent
