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Banks in Portugal borrowing heavily from ECB

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If this is a sign of things to come for Portugal, the near term future is not looking good. Banks in Portugal had been unable to borrow from other European banks as they were considered too risky, so going to the ECB has been the only option. That the number being borrowed is hitting new highs should also be a warning sign. The Guardian:

The reliance of eurozone banks on the European Central Bank was demonstrated on Monday when Portugal revealed that its domestic banks were tapping the central bank for record amounts of funding.

The Bank of Portugal said the use by domestic banks for the various facilities available from the ECB rose to €56.3bn in March – up from €47.5bn in February and greater than the previous record level of €49.1bn in August 2010.

Bailed out by the EU and International Monetary Fund in April 2011 for €78bn, Portugal has €12bn earmarked for bolstering its banks' capital positions if necessary in the months ahead.

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