Portugal's second largest lender, Banco Espirito Santo, attempted to calm European authorities and the global markets. It revealed as of June 30, its exposure to the troubled Grupo Espirito Santo was close to 1.2 billion Euros, or roughly $1.6 billion. The group company reportedly stopped to honor promissory note and Banco Espirito Santo's parent company, Espirito Santo International, missed payment on its commercial papers. While matters concerning the group company were private, Banco Espirito Santo's exposure to it triggered great worries over the financial well-being of Portugal. The Lisbon-based bank didn't comment on its plan to unwind the exposure, but it said in a statement, "Banco Espirito Santo is committed not to increase its total exposure to the Espirito Santo Group." Investors in Europe have been frustrated with the lack of transparency in Portugal's banking system. The European Central Bank already proposed additional oversights over individual banks to avoid corruption and prevent unnecessary bailouts in the future.
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