MADRID | By Julia Pastor | It has been a long process plenty of gives and takes but Spanish company Sacyr and Panama Canal authority have agreed in principle over works’ finalisation at the inland waterway that connects the Atlantic Ocean to the Pacific. The pre-deal is a cocktail mixing proposals of one side and the other: converting the $400 million insurance into a loan to enable the firm obtain external funds, and also an equally divided contribution of $100 million on each part. Furthermore, Panamian administrator will allow GUPC to postpone the repayment of $780 million anticipated in the contract. The international arbitration on $1,600 million in overun costs will continue parallel to project’s termination.
Articles by Julia Pastor
About the Author
OP-ED By Julia Pastor | The term PIIGS was coined in the 90s to speak about troubled southern countries on the eve of their entry into euro zone. During the current crisis, the word has been recurrently used to point bailed-out economies. And it kind of hurts. No international institution has ever adopted the ‘P word’. Banks such as Barclays even banned their analysts to use it.
MADRID | By The Corner Team | When Bill bought 6% of Spanish construction company FCC in last October Spain’s analysts remarked renowed investors interest in the country and anticipated the trend would continue in the coming months. On Tuesday, Bill Gates counterbacked with the acqusition of 2-3% of private security Prosegur.
MADRID | By Julia Pastor | The delicate pulse between the consortium led by Spanish construction company Sacyr and the Panama Canal Authority has become so stressful – too many actors, several proposals coming back and forth, mutual finger-pointing, and a two-week-extension that broke into pieces on Wednesday. Or that’s what we thought. The consortium working on Panama Canal’s third set of locks says it will continue to search for a solution to finish the works by foreseen 2015, although the Panamanian administration has cut negotiations. Of course, they denied any responsibility on the breakdown. “Time is over, that is all. We will not accept any blackmail,” PCA’s president said. Is this really the end of discussions or is the game still on?
MADRID | By Julia Pastor | What is good for Spain is good for Europe. Certainly, while recognising that the country “has pulled back from severe problems in some parts of its banking sector, thanks to its reform and policy actions,” the European authorities’ fifth review does not omit the fact that this has been achieved “with the support of the euro area and broader European initiatives.”
MADRID | By Julia Pastor | A Downing Street report, elaborated as part of the political campaign before Scotland’s independency referendum, explains that Iberdrola’s subsidiary Scottish Power could lose the regulation advantages that London negotiated with Brussels. Some have understood the issue as a warning or a threat about risks for Iberdrola to be forced to sell its electricity transportation grid at Great Britain’s north. It only would comprise high-tension lines, which means a little portion of 20-25% of Iberdrola’s income coming from Scottish Power.
MADRID | By Julia Pastor | Christine Lagarde, Managing Director of the International Monetary Fund and Mario Draghi ECB’s president were in the same Davos panel on Saturday. Both talked about signs of recovery across the world and the euro zone. However, as she said that deflation potential risks in the euro zone must not be ignored, he minimized danger and insisted once more that the bank is prepared to deploy a QE’s policy if deflation appeared.
MADRID | By Julia Pastor | The same day Spanish banking system credit line was officially cancelled, the country issued a record 10-year bond amounting €10 bn. The syndicated bond sale was strongly oversubscribed by almost four times the sum on offer, just beaten by €44bm of EFSF first issue.
MADRID | By Fernando G. Urbaneja and Julia Pastor | The depressed Spanish real state sector wakes up slowly, and hopefully, steady thanks to Inmobiliaria Colonial and Realia, two midcap construction companies, which went through the sorrows of housing markets crash. The first is involved in a €1 billion capital increase; the second is said to be bought a major stake by Amancio Ortega, Inditex chairman and third world’s wealthiest businessman.
MADRID| By Julia Pastor| Far from resolving the strife over additional costs to finalise Panama Canal’s third set of locks, actors involved are apparently working on different positions. Spanish company Sacyr, which leads the consortium undertaking the expansion bet on an agreement since the beginning, but the Panama Canal Authority has not smoothed the path, even rejecting EU’ mediation. Last Sacyr’s offer considers to cofinance the project. PCA’s answer has been a different proposal for using the infrastructure’s insurance as a guarantee to get external financing and terminate the works. The deal remains blocked then.