2013

* JUL 26: BES reports worse than expected losses for thefirst half of the year and says it is considering buying Swissbank BSI. * NOV 21: BES is first Portuguese bank to issue subordinateddebt in four years. The 750 million euros sale is billed as signof confidence in Portugal's recovery. * DEC 12: Wall Street Journal reports that Espirito SantoInternational (ESI), an Espirito Santo family company, sold morethan 6 billion euros of debt to one of its own investment fundsin a 21 month period from 2011. Newspaper also says thatEspirito Santo Financial Group 2012 accounts value its stake inBES at more than four times its 365 million euros market value. * END 2013: Angola government gives a guarantee for 4.2billion euros of lending (or 70 percent of the total loan book)of BES Angola after the Bank of Portugal became concerned aboutthe exposures. Development is not made public.2014 * EARLY 2014: Bank of Portugal hires auditors KPMG to carryout a ESI "a special purpose limited review" into ESI's thirdquarter and full year results for 2013. The development is notpublicised. * FEB 13: BES posts slightly higher than expected 2013 lossand says it will not rule out raising cash. * MAY 15: BES announces 1.045 billion euros capital raise byoffering cheap stock to existing shareholders. ESFG and CreditAgricole announce that they are dissolving BESPAR, a holdingcompany that owned their joint 47 percent stake in BES. ESFG isleft with 27.36 percent and Credit Agricole with 20.12 percent.http://www.esfg.com/LinkClick.aspx?link=2014%2fESFGandCA.PDF&tabid=211&mid=1069 * MAY 21: BES tells investors that independent auditorsfound "irregularities" at ESI that left the company in a"serious financial situation". Bank warns it is facing"reputational risk" over selling ESI bonds to customers. Sharesfall sharply. http://www.bes.pt/sitebes/cms.aspx?plg=12585468-7c2c-4fba-ac16-52af4ada9aa5 * MAY 22: BES CEO Ricardo Espirito Santo Salgado tellsPortuguese newspaper that the bank knew nothing of ESI'stroubles. * MAY 27: ESFG and Credit Agricole say their stakes in BESwill fall after the capital raise because they will not take upall the cheap shares they have been allocated. ESFG's stake willreduce to 20 percent and Credit Agricole's to 15 percent. http://www.esfg.com/LinkClick.aspx?link=2014%2fESFGQ114ResultsReleaseENBSIS.PDF&tabid=211&mid=1069 * MAY 29: ESFG reveals further details of ESI's specialaudit findings, including that ESI had omitted debts from itsaccounts, overvalued assets and maintained inadequate records.It describes ESI as having an "extremely negative financialsituation" and says the company will improve corporategovernance and reorganize. http://www.esfg.com/LinkClick.aspx?link=2014%2fESFGPhaseTwoEN.PDF&tabid=211&mid=1069 * JUN 11: BES completes 1.045 billion euros capital raise.CEO Salgado tells Reuters his family has lost control of thebank. * MID JUN: Portuguese media reveal problems at BES's Angolansubsidiary, including the fact that the bank's local team doesnot know the identity of the underlying borrowers for most ofits loan book. * JUN 19: Espirito Santo family members, including BES CEOSalgado, agree to give up their leadership of the bank and stepdown from its board after a meeting with the Bank of Portugal. * JUN 20: Salgado's departure is announced, ESFG says itwill propose BES's current chief financial officer, AmilcarMorais Pires, as Salgado's successor. http://www.esfg.com/LinkClick.aspx?link=2014%2fESFG+Informs+on+Proposal+for+an+AGM+at+BES.pdf&tabid=211&mid=1069 * JUN 27: Reuters reveals that Luxembourg's justiceauthorities have launched a probe into the Espirito Santos'family holding companies. ESFG shares fall 18.5 percent, BES's11 percent. Portugal's finance minister says situation at thebank is no threat to financial stability. * JUN 30: BES holds conference call to try to reassureinvestors on situation with family companies and Angola. Morethan 800 dial in but the call, which lasts just eight minutes,triggers a sharp sale in the stock. On it, BES revealed it hadabout 1 billion euros of exposure to Rioforte and ESI and gavedetails of the Angolan state guarantee. * JUL 1: Regulators impose short-selling ban on BES in bidto arrest BES's share price slide. Shares fall 13 percent andthen recover. Short selling in ESFG also suspended. * JUL 3: ESFG reveals a billion euros rise in its exposureto Grupo Espirito Santo over the first six months of the year.ESFG now has an exposure of 2.35 billion euros. It rose becauseESFG stepped in to ensure repayment of GES bonds sold to BESclient. ESFG also says it has 823 million euros in borrowingsfrom BES and 830 million euros of unsecured external borrowings.http://web3.cmvm.pt/sdi2004/emitentes/docs/FR51119.pdf * JUL 5: ESFG says it will now propose a respectedeconomist, Vitor Bento, as BES's next CEO and another outsider,Joao Moreira Rato, as chief financial officer.http://www.esfg.com/LinkClick.aspx?link=2014%2fESFG+Informs+on+BES+Governance+Proposals.pdf&tabid=211&mid=1069 * JUL 9: Swiss-based Banque Privee Espirito Santo, owned bythe wider Espirito Santo Group, admits that ESI missed repaymentdates on some debt sold to its clients. Sources say ESI isconsidering ways to restructure its debt * JUL 10:ESFG asks for its shares and bonds to be suspended,so it can assess the financial impact of its exposure to itslargest shareholder ESI, which ESFG describes as having"material difficulties". http://www.esfg.com/LinkClick.aspx?link=2014%2fESFG+Announces+Suspension+of+its+Shares+and+Listed+Bonds.pdf&tabid=81&mid=1083 BES shares suspended after falling as much as 19 percent inmorning trading. * JUL 10: BES issues statement insisting it can withstandany losses on lending to the Espirito Santo companies and has2.1 billion euros in excess capital. Also gives detailedbreakdown of 1.15 billion euros of lending to the familycompanies, but bank admits it cannot predict how much it willlose on the loans until the group presents a restructuringplan.http://web3.cmvm.pt/sdi2004/emitentes/docs/FR51236.pdf * JUL 11: BES shares resume trading and fall 5.5 percent tolowest in almost two years. Portugal's prime minister joins thechorus trying to soothe investors * JUL 13: Bank of Portugal tells BES not to wait for July 31shareholders meeting to install new management. * JUL 14: ESFG announces that it has sold 4.99 percent ofBES to repay funds owed to Nomura. Shares in BES fall another 10percent in morning trading, hitting their lowest level in almosttwo years.

(Reporting By Laura Noonan; Editing by Sophie Walker)