Lawyers, financial advisors, experts in macroeconomics. The source of hired consultants, since 2012, to manage the case of the swaps has represented a higher burden of five million euros for state coffers. A significant portion of this expenditure was made to defend public carriers in the lawsuit filed by Santander in London, the bank ended up winning by imposing the state a cost that is estimated at 1.8 billion euros. Companies ensure that the guidelines for these direct adjustments left the Secretary of the Treasury at the time led by Maria Luís Albuquerque.
The controversy around the swaps , financial instruments to hedge the risk of rising interest rates on loans, just popped in early 2013, when the PSD Government / CDS was forced into a reshuffle to fend off two secretaries of state who had been involved in negotiating some of these contracts . However, it was still in October last year that the first award came, disclosed in public procurement platform (Portal Base): a Stormharbour British was chosen by the Management Agency of the Treasury and Public Debt (IGCP) to evaluate and propose solutions for derivatives of public enterprises. . Value: 497,000 euros
Four months later, the state, through the agency today chaired by Cristina Casalinho, began making new direct adjustments to attorneys Morais Leitão office, Galvão Teles, Soares da Silva & amp; Associates to study a negotiating strategy or litigation with the banks that had sold the swaps . In January and February 2013, appeared, so that two awards in the amount of 10,000 and 49,300 euros, respectively, at a ratio of 150 euros per hour.
The latter contract is particularly relevant, since it confirms alarms within the government sounded when public companies were faced with threats from financial institutions who wanted to unilaterally cancel derivatives. In a number clause, it was determined that the law firm would “advise the IGCP in defining the legal / business strategy to be adopted following the exercise clauses ‘ call ‘ by a banking counterparty.” The case, this unilateral cancellation would mean immediate risks, forcing companies to pay on time the high losses that swaps piling up.
Morais Leitão, Galvão Teles, Soares da Silva & amp ; Associates would be rehired, this time by the Treasury and Finance Directorate-General (DGTF) in September 2013 with the same purpose: legal support “for the negotiation, counseling and defense of complex financial derivative transactions entered into by public companies “. The contract, worth 340,000 euros, is also said that “banks threatened to trigger early redemption clauses in contracts could impact other State funding and trigger chain failures with unforeseen budgetary impacts.”
heavy invoices
But the biggest bills come later, when the arm of the railroad between the Executive Passos Coelho and Santander led to a bank’s complaint in London to see recognized the validity of the swaps that sold and guarantee payment of the quarterly installments that companies suspended from September 2013. on Friday, the Commercial Court, UK, gave a favorable judgment to the bank, but which the state can still appeal.
In Portugal, Cardigos and Associates was chosen to accompany the process. Adjustments to direct law firm soon began this month. The first contract of 189,000 euros, was concluded by DGTF and from the obligations of Cardigos, was to “identify consultants, reviewers and English colleagues” to “recommend they find most convenient to the advice of this process.” Despite the intention to hire advisers in London, the Portuguese office has not disappeared adjudications related to this case, with registration at Portal Base of five direct contracts, with a total value of 339,000 euros and signed by Metro do Porto and the Lisbon Metro (two of the companies processed by Santander, alongside the Carris and STCP).
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