Santander buys Popular for one euro with the approval of Brussels

Image result for santander

Banco Santander has purchased Banco Popular for one euro. The operation, promoted from Brussels and executed via auction after determining the non-viability of the Popular , supposes the end to the soap opera of what was the most profitable entity in the world. Today, its reality is diametrically opposed, after a spiral of loss of value for months. The resolution implies that shareholders and holders of subordinated debt lose all their money, a measure that will prevent them from putting public money.

To heal Popular’s balance sheets , which suffer a late entry into the brick and a high percentage of bad loans, Santander will increase capital by 7,000 million to avoid altering its current ratios and swallowing without trauma its up to now competitor. The entity affirms that there are no counterparties or public guarantees in the operation.

Boundary situation and intervention

The situation of the Popular was critical . The European Central Bank (ECB) concluded that it was at risk of falling due to the “significant deterioration” of its liquidity in recent days, as a result of a continued flight of deposits and a lack of clarity in its future plans. On the stock exchange, in the last week the collapse had exceeded 50%. It was, data in hand, unfeasible: an urgent examination was carried out through an independent analyst and shed losses of 2,000 million in a central scenario and up to 8,200 million in the worst scenario.

Therefore, this Wednesday the entity intervened, which came under the control of the Fund for Orderly Bank Restructuring (FROB). An auction process was started by auction, which left Santander as the winner. It is not known if other entities submitted offers, although the FROB states that its offer was the “only” one that met the requirements for admission.

The entire process was authorized by the European Commission. In this way, the mechanism, adopted by the Single Board of European Resolution and executed by the FROB, closes the drama of Popular.

The future of the brand

Image result for frob santander

The Popular brand will disappear, putting an end to ninety years of history. From the beginning, it will be integrated into Santander, including customers, to then merge. Botín has requested tranquility from clients, whose deposits are not in danger. “Nothing changes for the Popular customers,” who will be served by the same people, he said.

Where there will be changes is in the current Popular dome, which will be relieved. Banco Santander has immediately appointed a new board of directors at Banco Popular that will be made up of five members and will be chaired by Javier García Cantera.

It will lead the market, but it will lighten the weight of real estate

The resulting entity will be the leader in Spain in asset management, with a combined volume of over 485,000 million, ahead of CaixaBank. It will have 17 million customers and will have the leadership in credit and in the SME market, which was a strong point of Popular. Santander expects the operation to be profitable in three years.

Popular’s accounts are heavily burdened by real estate assets. This week he had to complete the revaluation of his portfolio, a titanic task that would give more clues to potential buyers, something that is not necessarily necessary. Brussels has not wanted to wait any longer. At a press conference, Santander has reported that half of the real estate portfolio will be released in 18 months.

The Government and the FROB bless the resolution

The Government has given its blessing to the sale process. The Minister of Economy, Luis de Guindos , affirms that it is “a good exit for the entity given the situation that had arrived in recent weeks, since it implies maximum protection to depositors and the continuity of the activity”. Guindos has asked to appear before the Committee on Economy, Industry and Competitiveness to report on the process of resolution and sale of Banco Popular

From his Ministry, the sector had been encouraged to take over the Popular, even taking Bankia – public entity by 65% ​​- to the final stages of the acquisition process, fearing that a sale to other entities would not be completed and would end in settlement.

In a similar line, the FROB, which has managed the sale, details that through this decision the security of depositors is guaranteed and the absence of impact for public finances.

Continue Reading

Xunta believes that the dairy has "an adjustment problem" and figures in 650 million that it will allocate until 2020

The Regional Minister for Rural Affairs, Rosa Quintana

The Regional Minister for Rural Affairs, Rosa Quintana


assured on Tuesday that the situation of the Galician dairy sector is due to “a problem of adjustment between supply and demand of milk ” that is reproduced worldwide, a situation to which it has committed the support of the Xunta, which will allocate with 2020 horizon almost 650 million euros to various initiatives related to the sector.

Quintana, who has appeared at his own request in the Extraordinary Plenary Session hosted by the Galician Parliament, has ensured that the price situation of milk in Galicia is part of a “generalized fall in milk prices worldwide”, which connects with a “generalized rise in production”.

According to the minister, in countries like the United States, one of the world’s largest consumers of dairy products, “milk is being discarded”, a world situation that causes a “problem of mismatch between supply and demand of prices.”

“No one denies that we are going through a time of mismatch and adaptation of supply and demand and, therefore, of price,” said Quintana, who, however, has assured that production in the Community is the highest in the world. historical series and that 56 percent of Galicia’s milk is being charged at 29.81 cents per liter.

In this regard, he admitted that the “situation is hard”, although not more than in August 2012, when the prices of milk in Galicia were similar, but the production costs “were 20 percentage points higher than now”.

The head of Rural Environment has indicated that “between what has already been paid and what is expected to pay in the short term” to the sector add about 150 million euros invested, of which 95 million were direct aid to farms -an average of 9.845 euros per operation–.

To these funds, the council has added the contributions provided in the Rural Development Program (PDR), which would involve an injection of 500 million euros with 2020 horizon for modernization of farms, organic farming, producer organizations and promotion of differentiated quality, among other elements.

Rosa Quintana has claimed that, since 2009, the Xunta has adopted measures to improve the competitiveness of farms, their financial and liquidity capacity, as well as their commercial structure.

In this line, the regional government has worked on improving the territorial base of farms through the laws of Land Mobility and Improvement of the Territorial Agrarian Structure. With the aim of improving the financial and liquidity capacity, the Xunta also published the decree that regulates the recognition and registration of the Producer Organizations and is committed to projects of productive and transformative integration.

The Ministry of Agriculture, recalled Quintana, approved since 2012 three royal decrees to complete the regulation of the Law of Measures to Improve the Functioning of the Food Chain, rules that constitute the regulatory framework to make firm the obligation of contracts with fixed price and collection term.
By way of summary, Rosa Quintana said that in total there are more than 20 measures or blocks of measures in which the Xunta and the central government work to “move the sector forward.”

Among the short-term measures, the counsellers highlighted the need to obtain liquidity from the farms, with the streamlining of the CAP payments for the modernization and the incorporation of young people, which will soon be an injection of 20 millions of euros; advances of aid or agreements to favor the granting of loans or advances under advantageous conditions- 3 step process

In the field of liquidity, Quintana has announced that an aid order will soon be published to reach a two-year moratorium on loans granted to farmers at zero interest, which will have 1,100 potential beneficiaries. The elderly, Rural and Economy will allow access to 10 million euros of working capital for dairy farms in two ways, refinancing bank liabilities through loans of up to seven years or accessing new currency through loans of up to three years.

On the other hand, the conselleira has bet by the promotion of the consumption and the putting in a value of the product, with measures like the “imminent” start-up of a campaign of the stamp of quality ‘Galega 100%’ and the promotion of the milk consumption between children.

In their replies, the opposition groups have accused the councilor of being “with crossed arms” before the “serious” problem of the dairy sector and have demanded a price increase that allows farmers to cover production costs and make profitable the exploitations.

“I accuse her of being idle this last year with respect to the dairy sector”, said during his speech, the Socialist deputy Pablo Garcia, who has asked the Xunta to pronounce on the fair price at which they should charge the milk Galician farmers and has claimed more involvement in a “serious problem” of the sector.

On the other hand, the deputy of AGE Antón Sánchez has assured that a 30 percent of the dairy exploitations Galician are “charging prices that do not arrive, nor of far, to cover the costs of production” and are “in danger of closing”. He also criticized the councilor who came to Parliament to “say a vademecum” of measures but “not the solutions” to the “extreme situation” that live the farms.

In the same line, Tereixa Paz, of the BNG, has assured that the “main problem” of the Galician dairy sector is “the price” and has denounced that “blackmails” are taking place to farms, to which they “threaten” with “no Collect “milk if prices do not go down agreed. Thus, he has accused Quintana of being “next to whoever is trying to destroy the dairy sector” and has warned him that he “will have to choose” side.

The deputy of Mixed Group Carmen Iglesias has asked for an “urgent rise” in the prices of milk collection and has opted to launch from the Xunta programs of “recovery of consumption” after the “bad image” that milk has had in recent years and its competition with derivatives of soy or other products.

Finally, the popular deputy Isabel García Pacín has praised the measures outlined by the Conselleria and has assured that the Government is “betting not only on the dairy sector”, but “on all the productive industries of rural Galicia.”

Continue Reading

Teresa Rodríguez accuses Susana Díaz of "auparse" on Sánchez's back "because now she thinks it's in her best interest"

Teresa Rodríguez accuses Susana Díaz of "auparse" on Sánchez

The general coordinator of Podemos Andalucía, Teresa Rodríguez, has accused the president and secretary general of the PSOE-A, Susana Díaz, of trying to “auparse” now on the back of the president of the Government and leader of his party, Pedro Sánchez, “because understands that democratically suits him. “

In an interview with Europa Press, Rodriguez has warned that the head of the Andalusian Executive now “is going to stand on his back that he was hitting for months” because he does well electorally despite “systematically worked to get an investiture of Mariano Rajoy, even giving a coup within his party “and despite that” he systematically worked against the motion of censorship that placed Sánchez in the government “but now, when it is a reality,” it may be one of the beneficiaries “of said initiative.

Thus, he warned that Susana Diaz, of the institutional meeting he had with Sanchez, “brought as much as his first electoral campaign”, since he has demanded that he “reach the end” in the defense of the agreement on the autonomic financing set by the Andalusian Parliament with the support of four of the five political parties represented, all except Cs. “In exchange for 500 million, which are not such because 150 are of the deliveries to accounts and 350 depend on the flexibility of the deficit, we do not renounce the 4,000 million corresponding to Andalusia,” he added.

Thus, Rodriguez has questioned that Susana Diaz says he will not renounce such agreement because “you see little belligerence about the resignation that Sanchez has made to renew the funding model, especially when the Minister of Finance is the Andalusian ex-councilor, María Jesús Montero, who was the architect of the Andalusian document.

He insisted that one has to “reach the end” of an agreement that was closed by the Andalusian parliamentary sovereignty represented in four groups “that make up a very large absolute majority of the political representation of the Andalusians”, since he has stated that if a serious attempt is not made and a reform of the system that waits since 2014 for its reform and that can not wait two more years is put on the table, “Montero should resign”. And so, he warned: “Either he already does it or resigns: that is to be coherent and to reach the end”.

After guaranteeing that Podemos will defend the financing agreement until the end, Teresa Rodríguez has emphasized the contributions that her party has made this term to achieve some achievements such as “that the Social Services Law does not contain the seed of privatization, that the Law of Democratic Memory has a truth commission that makes it nothing more than a legislative adornment, we have contributed for the Disability Law to have significant advances or for Andalusia to have a law against antibiotics that is vanguard in the country. “

“But that generosity we have not found in the opposite direction,” lamented the leader of the purple party that has explained that “when it has been necessary to contribute to laws of PSOE-A that are progressive for Andalusia have had Podemos on their side, but the PSOE-A has despised with little consideration the eleven legislative proposals that Podemos has promoted “.

Thus, he has criticized that the PSOE-A and PP-A “ally” to reject the laws of Podemos, an initiative with which the purple party has been configuring a legislative baggage that, as Rodriguez has explained, will serve for the next electoral campaign because now “we have a much more defined project, which has behind it a very specific legislative work and that is capable of going beyond the slogan to the concrete proposal”.


On the other hand, Teresa Rodriguez has warned that the PSOE of Pedro Sanchez and the leader in Andalusia Susana Diaz “are different in some things and the same in others” because this match, in Spain, “has been the architect of things well done and also of losses of rights “, since he recalled that the first” particularly hard “labor reforms were put on the table by Felipe González, just as the PSOE set in motion the processes of industrial reconversion,” which have been especially painful for Andalusia”.

As far as Andalusia is concerned, he has considered that “susanism in itself is a particular phenomenon within the PSOE”. “In addition to being demonstrated that it is the most right-wing sector within the PSOE, it has been the only PSOE that has decided to privilege alliances with Cs against alliances with Podemos, they have also been the main architects of Rajoy’s last inauguration, even generating a coup against Sanchez that was promoted from the PSOE-A, “he added.

“And after 40 years of government in Andalusia are the main stakeholders in that things continue as they are but the PSOE-A can not be a party of transformation and change”, has continued the policy of Cadiz that has pointed out that while the Socialists defended that autonomy had benefited families in the autonomous community, “there are certain families linked to the PSOE-A that have improved their status but, seeing the data, the Andalusian social majority has been losing rights especially in the last ten years”.

The leader of the purple party has warned that Andalusia “runs on a path of no development” and this, in his opinion, “is the result of the PSOE-A policies.” “They are doing well but the Andalusian social majority can do much better,” he said.

Likewise, and following the accusations of Susana Díaz pointing to Podemos Andalucía as the most radical within the party, Teresa Rodríguez has considered that each one sees the left and right depending on where they are positioned. “In the place where Susana Díaz is, we must look like radical left-wing radicals who put on the table initiatives to justify the diets with a ticket, which equates unemployments to unemployment, to launch an anti-corruption office or an accounting law. clear and open to prevent corruption and avoid things that embarrass us to the point that there is money from the unemployed who have gone to brothels, “he said ironically.

“Put on the table measures that can avoid that must seem absolute radicalism,” added Rodriguez, who has warned that “you can do a survey within the PSOE on which is the right most and there will be an absolute coincidence in that Susana Díaz represents exactly that “, the PSOE” more right-wing and more professional “.

And is that, as pointed out, is formed by a second generation of socialist militants “who have been released since the age of 18 and who have participated in the party, the government or the administration, or have been changing with revolving doors, since they turned 18 until now. ” “They are not socialist militants who come from the struggle against the dictatorship, the syndicalism or the neighborhood movement or feminist, they are people who have set their teeth in the seats and in politics as a profession, that’s why they are special in Andalusia”, added the leader of Podemos Andalucía to refer to them as “the test tubes of Andalusian socialism”. “And all that, it’s susanismo”, has settled.

Continue Reading