State pays ‘swap’ contracts if valid order in Portugal – Daily News – Lisbon

Secretary of State Ricardo Mourinho Félix was heard concerning the government strategy on contracts between public companies and Santander Totta

the government said today that if there is an order of payment on contracts ‘swap’ concluded between four public transport companies and Santander Totta and it is considered valid in Portugal, the state will fulfill this obligation.

“If there is a valid order Portugal to pay, of course, the state will meet. we will not enter a logic of ‘not paid’,” said Ricardo Mourinho Félix reporters at the end of the hearing in committee Budget, Finance and Administrative Modernization.

the official was heard this morning by Members of this committee on the subject of the Government’s strategy on contracts ‘swap’ (financial products linked to bank loans) entered into four public companies transport and Banco Santander Totta, the validity of which is being determined in the Commercial Court in London.

at the end of the hearing, Ricardo Mourinho Félix told reporters that “up to end the feature” payment coupon that has been suspended since September 2013 is not due and added that any payment order has to be recognized in Portugal

“the order [to come the British Justice] is only valid in Portugal from the moment it is recognized as valid in the Portuguese legal system, “said Secretary of the Treasury.

During the hearing, the minister had stated that these contracts currently have potential losses of EUR 1,800 million for public companies.

March 4, the Commercial Court of London ruled in favor of Santander Totta in the judicial proceedings on the validity of nine contracts ‘swap’ interest rate instruments derived from complex interest rate that the contracted companies to reduce the burden of debt.

However, the Government announced on 15 March that public transport companies Metropolitano de Lisboa, Carris, Metro do Porto and STCP will appeal the decision of the Commercial Court in London on the dispute with Banco Santander Totta.

the case dates back to early 2013, when those public passenger transport companies considered, “unilaterally “invalid contracts ‘swap’ concluded with the bank, suspending payments due.

a ‘swap’ is a hedging contract is to fix an interest rate for a loan with the obligation one party to pay the difference between the fixed rate and rate that varies according to the reference interest rates.