Sergio Monteiro signed “swaps” but ensures that was never … – Business Journal – Portugal

Sergio Monteiro signed “swaps” but ensures that has never been responsible for approving

The Secretary of State for Transport has signed contracts “swap” but only Once approved by the entitled, secured itself a reaction to a news News Journal on Monday.

Sergio Monteiro was one of those responsible, in CGD, for preparing financial risk management contracts, especially those linked to the TGV project. Sergio Monteiro is the Secretary of State for Transport, that oversees public companies that could have suffered losses following the signing of such products. One such company is Parpública, who received from state companies “swaps” with potential losses.

The information is not new but made this Monday, January 12, cover the Journal News in Following the evaluation that the Court made the TGV in Portugal. News that forced the governor to provide public explanations. Sergio Monteiro, in a statement sent to newsrooms, indicates that never approved “swaps”. Only signed the

“All interventions that Sergio Silva Monteiro had in signing any contracts -. These or other – have always been made after due approval of financing and derivative transactions in own organs CGD Group, according to the internal rules of ‘compliance’. It should be noted that the Secretary of State for Infrastructure Transport and Communications, then director of the CGD Group did not fit these organs, “says the note coming from the Ministry of Economy’s office . Monteiro had been accused of having been on the side of the development of public-private partnerships (PPP) and then on the side of the state, when the renegotiated.

The financial risk management contracts were quite controversial in 2012 and 2013, when it became public that public companies could suffer a higher overall hole to 3 billion if the bank chose to cancel the “swaps” that had sold – as a response of the financial sector to the delicate financial situation of companies. These products are usually purchased to protect specific loan to fluctuations in interest rates. In Portugal, many turned out to be a way for companies to improve short-term results at the expense of future charges. The issue has led to a parliamentary inquiry.

TGV only a plus, according to Monteiro

Sergio Monteiro, Secretary of State with the authority Transport but that was not heard in that committee of inquiry the conclusion of these protection agreements in relation to financial risk, signed the financing contract Elos consortium, project winner TGV – Monteiro was there, one of the leaders of CGD

With the cancellation of the project, funding would fall. But the state has chosen to integrate it into Parpública, state company that manages investments in public companies. This transfer, that Sergio Monteiro claims to have been coordinated by Finance Minister Maria Luís Albuquerque, allowed prevent the losses associated with “swaps” of that funding would continue to be potential and not to turn into real.

“If different happen if the financial package was not passed: the potential loss became immediately real loss and its cost fell immediately on taxpayers, “the statement said. It is for this reason that Sergio Monteiro claims that the “only positive component of the previous project TGV” was the very long-term financing, leveraged by Parpública when it was impossible to finance themselves in the markets.

But this funding has associated “swaps” with potential losses associated to 152.9 million euros. Monteiro ensures that led to the end, “there is no loss to the company or the state.”