Portuguese authorities deny pushing former BES chief to step down

Portuguese Prime Minister Pedro Passos Coelho and Bank of Portugal Governor Carlos Costa denied allegations on Wednesday that they suggested former Banco Espirito Santo (BES) chief Ricardo Salgado to step down.

"Taking into account the news published today, the Bank of Portugal denies that there was any kind of indication regarding the composition of the governing bodies of the Espirito Santo Group," the Bank of Portugal said in a note released on Wednesday.

The Prime Minister's office said in a press release that it "categorically disapproves" of the claims regarding ordering Salgado to step down, and referred to them as "unfounded speculation."

Portuguese daily newspaper Publico reported on Wednesday that several meetings had taken place from October 2013 between Costa and Passos Coelho regarding financial troubles at the Espirito Santo Group which hit bank BES.

The country's Parliamentary Committee is currently investigating the bank Banco Espirito Santo's fall. The former BES chief Ricardo Salgado stepped down in July after the 150-year-old banking dynasty was rescued by the Portuguese state following reported losses of 3.6 billion euros (4.6 billion U.S. dollars). Salgado was detained at the end of July for alleged money laundering and tax evasion, and was freed after he paid a sum of 3 million euros.

In early August the Bank of Portugal took control of BES and announced that the institution would be split into a "bad bank," and the Novo Banco, which keeps the healthy assets and will receive a 4.9-billion-euro bailout through the Portuguese banking Resolution Fund.

The BES crisis has been referred to by analysts as one of the country's biggest financial scandals, and has tainted its reputation less than four months after the country exited its bailout program without a credit line.