LISBON, March 21 Portugal's government on
Tuesday extended the maturities on over 4 billion euros of its
loans to the country's bank resolution fund by nearly three
decades to 2046, ensuring that banks can keep paying what they
currently pay in fund contributions, the finance ministry said.
The decision comes as the state is in the final stages of
negotiating a deal to sell rescued bank Novo Banco to U.S. fund
Lone Star, which has offered to inject up to 1 billion euros
into the bank in return for a 75 percent stake, but with little
or no money to be paid to the state itself.
Portugal injected 4.9 billion euros in Novo Banco in 2014
via the bank resolution fund, which is the common responsibility
of all banks operating in Portugal, who have to foot the bill
for any difference between the rescue funds and the selling
(Reporting By Andrei Khalip, editing by Axel Bugge)