Companies only provisionaram 10% of the invoice swaps Santander – Diário de Notícias – Lisbon

the Four public transport companies provisionaram 170 million to pay for the account of 1.7 billion. Impact on the deficit is real

the bill for The swaps to pay for public transport companies by Santander Totta sum 1690 million euros, a figure that has soared since Maria Luis Albuquerque, former minister of Finance, decided not to negotiate with the bank not to pay. This is the current value of swaps, contracts for financial derivatives, highly speculative, intended to cover the risk of fluctuations in interest rates and foreign exchange. The first portion of the account to pay off right away next to the Santander Totta is 441 million, in respect of flows already accrued.

Before the word of the English court, which yesterday came to give reason to the bank and confirm the validity of the contracts, swap, Santander Totta already came to affirm that “the decision is unequivocal, waiting for now that they are honored the commitments”. But also expressed its willingness to negotiate. The DN/cash Money know that the bank is willing to discuss either the value itself you want to the deadline for the payment. Up to the time of closing this edition, Santander had not received any direct contact on the part of the government.

late in the afternoon, the Ministry of Finance issued a press release in which it announced that the “public companies (Metropolitano de Lisboa, Carris, Metro do Porto and STCP) shall use all legal means at its disposal to appeal the decision handed down today by the Court of Appeal in English (Court of Appeals), regarding the applicability of Portuguese law to contracts swap agreements between these and the Santander Totta, having already expressed such intention”. Will appeal the decision “within the period legally provided (up to the 10th day of January 2017) to the English court of last instance. But it leaves the door open to negotiations. “Without prejudice to the staunch defence of their rights, companies remain available, as they always have been throughout the process, to find a solution negotiating alternative that will allow to put an end to litigation.”

Are concerned, the nine swap contracts with banco Santander Totta. The decision of the court now known of direct concern to seven, since there are other two that had already become legally binding in may, and can be executed. These two are in respect of contracts with the Rail and the Metro of Porto, with values below the other. The Finance does not comment on whether the court’s decision could have budgetary implications. It all depends on the reports and accounts provisionaram the amounts related to the swaps, or if, on the contrary, the provisions have not been made or are scarce and the invoice will directly impact on the deficit.

The analysis of the DN/Live Cash allowed us to conclude that the sum of the provisions of the four companies to lawsuits in 2015 amounted to 200 million euros, of which 174 million are related to the legal challenge of Santander. On the Rails, “the provisions for lawsuits in progress were strengthened in 18.5 million relating to the instalments due in march, June and September 2015″ of the swaps of Santander. In total, are provided for 41.8 million for court proceedings in progress.

The Lisbon Subway has provisioned 100.5 million euros on 31 December 2015 (47.8 million in 2014), but of this total only 78,7 million are related to accrued interest and not paid by Santander between December 2013 and 2015.

In the Metro do Porto, the provisions for lawsuits are 51.4 million in 2015 (+49.8 million in 2014), but the company does not specify what amount is for the process of the swap of Santander.

Already the STCP strengthened the provision for € 2.2 million “on 31 December 2015, to cover the charges that are expected to support with this action and which were not yet reflected in the financial statements”.

To the invoice to pay for these swaps, totaling 1690 million euros, it is necessary to add interest and also other costs to litigate with Santander in justice. Even before the appeal to the Court of Appeals, the costs of lawyers hired by the State had already reached 11 million euros, to which must be added the costs of the proceedings.

Judge of the brexit gives reason to the bank

The appeal to the Supreme Court may nothing to advance this process. “Given the violence of the judgment of the Court of Appeals, hardly any appeal to the Supreme will succeed”, you agree the sources connected to both the justice either to the bank, contacted by the DN/Cash. Moreover, appeal to the Supreme Court in London is not a right in itself but a possibility, and the Supreme has the power to decide whether or not to enjoy the subjects that you arrive. The refusal to the input of the process on the doors of this institution can occur, even more so when the earlier decisions “come stamped and signed by the judges with the scrolls”.

In the first instance, the decision was of judge William Blair, brother of former prime minister Tony Blair, a renowned professional of justice. Now, in this second moment, the decision was the collective of judges chaired by Terence Etherton, the same judge who decided that the brexit, the output of the United Kingdom of the European Union, had to be submitted to the English Parliament, flanked by two other judges: Andrew Longmore and Martin Moore-Bick.

Mário Centeno, minister of Finance, the sum a defeat in the courts, where the process was stop after Maria Luís Albuquerque, minister to Pedro Passos Coelho, to have refused the agreement proposed by the Santander – with the other banks there was agreement. A decision that will ultimately have implications on the budgets of the State, since at least 2014.

These swaps were negotiated by public companies, with highlight to the transport companies Metropolitano de Lisboa, Metro do Porto, Carris and STCP, during the governments of José Sócrates. And this makes the war policy PSD-PS is installed. The deal was made at the end of 2007 and, over time, the bank’s capital the Spanish made several restructuring proposals to the companies involved, having come to propose to the government of Passos Coelho, the granting of funding to pay for the swaps and to more advantageous conditions in terms of maturities and interest rates. From 2012, the management of the swaps happened to be the IGCP and the negotiation has to do with the companies. From there to here, little is said, but the invoice has not stopped to gain.