Portugal Banks' ECB Borrowing Down 6% in July

Reuters

Portuguese banks' borrowing from the European Central Bank (ECB) fell 6% in July after hitting a record high in the previous month as lenders in the bailed-out nation strove to reduce their dependency on ECB funds.

The Bank of Portugal said on its website on Monday that cumulative borrowing at the end of last month stood at 56.8 billion euros ($70.22 billion). An all-time record of 60.5 billion euros was set in June.

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Top Portuguese banks met the European Banking Authority's new capital requirements in June but have been frozen out of the interbank funding market due to nerves over the country's economic prospects.

Lisbon is working to repair its public finances after taking a 78-billion euro EU/IMF bailout.