Wood reached an agreement with Santander for the restructuring of the ten contracts swap that have been contracted between 2008 and 2009 for five public companies in the madeira islands.
The agreement, reported this Monday by the Diário de Notícias of Madeira, and confirmed by the PUBLIC along with the regional executive and the bank, has a haircut 50% in interest, resulting from interruption in 2014 of company payments to Santander. The date on which the government of madeira has brought five legal actions requesting the invalidity of the contracts.
The solution found, that will allow the city of Funchal to save half a million euros in interest, implies the passage of the contracts directly to the responsibility of the region and allows the recalendarização of late payments through the granting of a bank loan to the regional government.
understanding between The parties, reached in the last few weeks, it does fall legal actions that were in progress in the Justice Portuguese. The processes were not assessed by the Court of London, as well as provide for the contracts, but the judgments of several instances judged always the national courts are incompetent to evaluate the dispute.
"Santander has always been available to reach an agreement in relation to the processes involving contracts swap, and this understanding is an example of this willingness," said a source from the bank to the PUBLIC, with the proviso that the institution continues to be available to negotiate with the State.
In Funchal, before the agreement, and even before the appeal to justice, was tried to an understanding. The Wood wanted, such as the State asked initially to the bank, to renegotiate the contracts based on discounts on the potential losses, which the Santander rejected.
The alternative proposed by Santander was the same as the bank came to present the previous government of Passos Coelho: the granting of funding, on terms more advantageous in terms of maturity and interest rates, which would serve to pay the swap. This option was rejected then by the executive, but in the successive defeats in the justice Wood decided not to wait any longer.
"we Wanted to take precautions against the risk of increasing be in a negotiating position is increasingly fragile, due to court rulings unfavourable that have been issued," explained the regional secretary of Finance and Public Administration, Rui Gonçalves, arguing that the restructuring is more "rational" than the cancellation of the contracts. Obliging, he noticed, that the Wood would take real losses close to 100 million euros.
The agreement, to be completed, you will still need to be validated by the Court of Auditors, having the entire negotiation process was accompanied by the Bank of Portugal, INE, IGCP – Agency and Treasury Management of the Public Debt, which has already issued an opinion favorable to the operation.
are swap hired by the development companies the West End, the North, Porto Santo, Metropolitan and Wood Business Parks, which at the end of 2015, the second had Rui Gonçalves to the PUBLIC, had potential losses of € 106 million. To this money, moreover, close to 35 million euros relating to the benefits not paid. At the beginning of April 2014, the government of madeira has requested the invalidity of these derivatives before national courts, claiming the inability of the administrations of the above-mentioned companies to enter into contracts for speculation. A dispute that ends now.