Little impact on Portugal from Credit Suisse fallout

The Portuguese stock and financial markets regulator CMVM stated over the weekend that Portugal faces no direct impact from either the Credit Suisse or US banks crises.

The President of the CMVM, Luís Laginha de Sousa stated his belief on Sunday in an interview with Antena 1 and Negócios. “There is no cause for concern as to direct impacts from the failure of the US banks or the Swiss bank crisis”.
However, he did say it was necessary to remain watchful because confidence needed to be preserved.
“We have to have the notion that we don’t live in a world made up of islands, and then sometimes there are phenomena of a second order, particularly when the causes (of banking crises) are intangible such as (a loss of) confidence. From this point of view both national and European authorities have to act to bolster confidence”, he said.
The former Bank of Portugal governor who has been heading the CMVM since November said that CMVM is following the situation, adding that the matter would be up for discussion at the regular meeting of the National Council of Financial Supervisors today. (Monday)
“I think it’s important to emphasise that we’re keeping an eye on these matters and as to any effects resulting from direct expose, I don’t any particular cause for concern at the moment”, he said. On Sunday it was announced that Switzerland’s biggest bank, UBS, has agreed to buy Credit Suisse in an emergency rescue deal aimed at stemming financial market panic unleashed by the failure of the two American banks earlier this month.

Photo: Lusa – Tiago Petinga