Further to our note yesterday , the European Central Bank ( plc ) has stated that it neither requested nor approved the move by Portugal to bail in senior bondholders at lender Novo Banco at the end of last year . Portugal 's central bank approved a transfer of funds last month from Novo Banco to Banco Espirito Santo to plug a € 1.4bn ( $ 1.5bn ) hole in Novo Banco 's debt , identified by an ECB stress test . Some investors criticised the move , arguing it discriminated between bondholders , as sanctions were imposed on senior investors while others were unaffected ; the investors have asked the ECB to intervene .
Further to our note yesterday, the European Central Bank (ECB) has stated that it neither requested nor approved the move by Portugal to bail in senior bondholders at lender Novo Banco at the end of last year. Portugal's central bank approved a transfer of bonds last month from Novo Banco to Banco Espirito Santo to plug a €1.4bn ($1.5bn) hole in Novo Banco's finances, identified by an ECB stress test. Some investors criticised the move, arguing it discriminated between bondholders, as losses were imposed on senior bondholders while others were unaffected; the investors have asked the ECB to intervene.