Portugal: Transport companies lose swap appeal

Page created: Tuesday, 13 December 2016 14:32 GMT

Carris   Metro do Porto  Metropolitano de Lisboa  Santander Totta  STCP  Swaps

Lisbon, Dec. 13 (Lusa) – London Court of Appeal confirmed on Tuesday the validity of the swap agreements entered into by Santander Totta and Portuguese public transport companies Metropolitano de Lisboa, Carris, Metro do Porto and STCP, confirming the sentence from a lower court.

In early 2013, the Portuguese finance ministry said the agreements were not valid and suspended the payment of the coupons.

“Faced with that decision and having exhausted all attempts at a negotiated accord, BST [Banco Santander Totta] was forced in May 2013 to go to the court chosen by the parties, the High Court of Justice/Commercial Court of London to ask it to decide on the validity of the swap agreements”, the bank said.

On 4 March this year, the Commercial Court decided in favour of the bank and said that the transport company obligations were valid, binding and had to be enforced.

In April, the public transport companies lodged an appeal at the Court of Appeal regarding seven of the nine swaps agreements and it was this court that decided to maintain the sentence in favour of BST.