The Government predicts that will decide the future of BPA in “10 or 15 days”
BARCELONA, 1 (IRIN)
The Andbank, Credit Andorra MoraBanc and Banc Sabadell d’Andorra banks together provide 30 million euros at the time of the creation of the Andorran Resolution Fund Repossessed, which should serve to have resources if they are necessary for Banca Privada d’Andorra (BPA).
At a press conference after a council of extraordinary ministers to approve the draft Law on Restructuring and Resolution Repossessed spokesman Minister and Finance Government of Andorra, Jordi Cinca, explained that the new standard provides for ten years to fully equip the background, like the European directive in this area, but has added this quickly by the urgency of the case BPA.
If it were necessary to use this fund, banks should not make contributions, but whether to use part or all of the fund shall repay the amount spent by the deadline of ten years specified.
Added the figure that banks must provide the new fund is “acceptable” for its part and will not affect its robustness because they have high levels of liquidity and solvency, and that there are is asking institutions Andorra anything that does not require the other European institutions, except advance to avoid systemic risk in the situation of BPA.
It also explained that, if you have to use the Guarantee Fund Deposits by a liquidation of BPA, the amount will be returned during the first year since it is used, not “generate feeling of vulnerability” for customers of other banks in Andorra.
Cinca recognized the new law -which expects to approve this Thursday andorrano– Parliament is a “very technical and cumbersome” document that includes additional and transitional provisions designed to present reality Andorran, but based on the European Directive 2014/59 – which Andorra had time to transpose until 2016 or 2017– to provide confidence to the international community.
You can create predicted that the Authority Resolution Repossessed within 10 to 15 days, and then this new body will decide where “routing solution BPA” either restructuring or liquidation
The agency will consist of five people with expertise in this area. three appointed by the Government and two appointed by the supervisory body of the Andorran financial system, the Inaf, of which one must be a member of its board of directors.
In addition, there may be appointed by the contributing banks to Andorrano Resolution Fund Observer Repossessed.
SAMPLES OF INTEREST PURCHASE
Asked about their interest to buy BPA has received the Inaf by some international financial institutions, Cinca is considered that an interest “purely exploratory, because the Inaf not yet know what to sell and how much is valued,” which is what must now realize thanks to the new law.
In addition to finding a solution . to BPA, the new law the Government of Andorra wants to send a message to the international community of applying “best practices to solve a financial crisis”
The new rule seeks to maintain the operation of BPA – temporales– albeit with restrictions preventing the loss of value, and leave all options open restructuring and resolution of the institution, and regulates how it should address each of the possibilities provided in the administrative, non-judicial.
It also specifies the priority of taking losses and costs in case of liquidation, so that first responders be shareholders, followed by the junior debt and “money from those responsible for the management of the entity –directivos– and therefore with direct responsibility for the bad practices “that have led to the current situation of BPA.
All this to” protect above all “deposits from customers has pointed Cinca, which has also affected the willingness to avoid BPA cost public resources of the State, ie taxpayers, which also supports the European directive.
The bill also enables debt the Government of Andorra to ensure credits and guarantees basic operations of the companies that had their money on BPA.
EMPLOYEES
As for the 270 workers of BPA, the new law says maintain their seniority to be transferred to ‘bridge bank’ which provides the standard to address the situation of BPA, and also if the company were liquidated, to calculate compensation in relation to his entire working career in the state.
And that BPA is divided into a ‘good bank’ and a ‘bad bank’ to separate the lawful assets of suspected illegal –lo that is analyzing the PWC consultant for more than two weeks -. and so give the entity’s continuity options and an assessment of its assets and liabilities
US
The minister concluded that the United States has issued a statement Wednesday which makes clear that can prohibit financial institutions in the country open or maintain accounts with BPA by suspicions of money laundering to international criminal organizations, but “there is no financial penalty associated with this rule.”
Cinca recalled that the Government has never considered the possibility of a fine, but this American clarification on speculation of various media “helps eliminate questions”
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