Barcelona cannot register players due to the debt it has with River de Uruguay, due to the pass of Gabriel Marques

Barcelona SC would be prevented by FIFA from signing and transferring players, due to the debt it has with River Plate, from Uruguay, for the pass of Gabriel Marques, who arrived at the Buenos Aires club in 2015.

Willie Tucci, President of River Plate of Uruguay, revealed that the lawsuit against the bullfighting club is already firm and that the first sanction that corresponds in this case is the prohibition of not signing players in the next transfer market. If they continue to be unpaid, the team could lose points and even the category.

“We have tried to speak with the previous and current authorities about Gabriel Marques’ debt, I cannot believe that a large team like Barcelona does not pay its debts. It catches my attention that they do not honor their commitments, we are talking about one of the great teams in America, ”Tucci began in the Sports Area.

He did not specify amounts, but assured that this can lead to serious penalties. He also clarified that it is a matter of responsibilities.

“They have to pay, this is not a problem of mood or feeling, this is a very practical issue. a debt that has many years, it was not paid, it was necessary to go to court with the costs and the time it takes. Justice failed, he was given a deadline and again he did not comply, “stressed the Uruguayan leader.

On the first sanctions, Barcelona would be prevented from incorporating players.

“Barcelona today has an impediment to incorporate and make player transfers. If it continues not to comply, it would go to loss of points and loss of category. I don’t know exactly how much time has to pass. The first sanction is a ban on making transfers and then comes the loss of points and others, ”Tucci said.

Marques returned to training with the Barcelona first team, after five months off the pitch for a ligament injury. His rehabilitation was done in Brazil and now he is in the final phase of his therapy.


Repsol leaves behind the red numbers due to Covid and earns 648 million in the first quarter | Companies

Repsol has left behind the losses that accompanied it during the year of the pandemic. The company led by Josu Jon Imaz has achieved a profit of 648 million of euros in the first three months of 2021 that contrast with the red numbers for 487 million registered in the same period of the previous year, since it has been driven by the recovery in crude prices.

And it is that, the outbreak of the Covid-19 pandemic caused in 2020 a collapse in world demand and the prices of reference raw materials that led Brent to record minimums of $ 15 per barrel in April of last year and to a average price for the year of 41 dollars. On the other hand, between January and March 2021 the average price of Brent has increased to 61 dollars per barrel and has allowed stocks to revalue, while that of Henry Hub gas stood at 2.7 dollars per MBtu, similar to the previous quarter.

For his part, adjusted net result, which measures the evolution of businesses discounting the variation in the value of inventories and extraordinary items, stood at 471 million euros, 5.4% above the equivalent period of 2020 thanks to the Exploration and Production and Chemical areas . In addition, all businesses obtained a positive operating cash flow, which for the Group as a whole amounted to a total of 1,030 million euros.

Likewise, Repsol highlights that in the first three months of the year has managed to reduce its net debt by 326 million euros (representing 5%) to reach 6,452 million. For its part, liquidity reached 8,456 million euros, which represents 2.93 times the short-term maturities. Additionally, in order to strengthen its financial position, the company closed in March an issue of subordinated bonds for an amount of 750 million euros.

By business areas, Exploration and Production contributed a result of 327 million euros, compared to 90 million in the same period of the previous year (+ 263%) thanks to the combination of cost adjustments, the optimization of operations and the rebound in the average prices of hydrocarbons compared to the first three months of 2020, which was 22% for Brent and 35% for Henry Hub. In addition, it achieved that its realization prices for crude oil and gas performed better than the international benchmark, with an increase between January and March of 23.4% in the case of crude oil and 41.7% for gas.

The area Industrial, for its part, achieved a result of 73 million euros, compared to 288 million in the first three months of 2020 (-74.6%), weighed down by the negative impact of Covid-19 on international market conditions. Specifically, the Chemicals, Wholesale and Gas Trading areas performed positively, while Refining obtained low margins and suffered from stoppages in activity. In addition, the area is being affected by the uncertainty generated by the energy transition, which will require projects and investments to meet the decarbonization objectives.

The area of Commercial and Renewables reached a result of 101 million, which is -16.5% less than the 121 million in the first quarter of fiscal year 2020. More in detail, restrictions on mobility and the effects of the storm Filomena at the beginning of the year contracted by 14 % demand for the quarter at service stations, although Renewables and Generation performed well, as did Lubricants, which increased their volumes sold.

An oil company in transformation

Repsol is in a moment of transformation after presenting its strategic plan for the period 2021-2025 in which it foresees investments of 18,300 million euros of which 30% (5.5 billion) will go to low-carbon initiatives. The new plan sets emission reduction targets, with a reduction in carbon intensity of 12% by 2025, 25% by 2030 and 50% by 2040

In this sense, during the first months of the year Repsol has launched various industrial transformation initiatives that allow it to advance in the energy transition and collaborate in the economic recovery of the country. 40% of investments in the quarter went to low-carbon projects.

In this sense, Repsol made progress during the quarter in transforming its industrial facilities into hubs multi-energy, capable of generating products with a low, zero or even negative carbon footprint. The company will invest in its refineries in Spain to move towards decarbonisation. Investments in Cartagena stand out, where work began for the construction of the new advanced biofuels plant, the first of its kind in Spain. In recent months, the 3D design of the facilities has begun, making progress in engineering projects and in the purchase of new equipment.In 2021, 66 of the 188 million euros planned for the project will be invested.

In relation to renewable hydrogen, a clear growth vector for the company, at the end of January 2021 the H24All project, a consortium led by Repsol to develop Europe’s first 100 MW alkaline electrolyzer plant. Likewise, Petronor and Repsol lead another relevant hydrogen project, the Basque Hydrogen Corridor, BH2C, announced on February 22. More than 78 organizations participate in it, it will mean an investment of more than 1,300 million euros until 2026

Repsol has a portfolio of 31 projects, with a total associated investment of 6,359 million euros, in the framework of the calls for expressions of interest for European Next Generation funds carried out by the Government.


British government debt hits record high due to COVID-19 pandemic


[British government debt hits a record high due to the new crown epidemic]CCTV news client news on April 23, according to data released by the British National Bureau of Statistics on the 23rd, due to the new crown epidemic, the UK government debt reached 24.3 billion pounds in March 2021 218.717 billion yuan). (Interface News)

CCTV news client news on April 23, according to the data released by the British National Bureau of Statistics on the 23rd, due to the new crown epidemic, the British government debt reached 24.3 billion pounds (approximately 218.717 billion yuan) in March 2021.

Statistics show that from 2020 to 2021, the overall debt of the British government will reach 303.1 billion pounds (approximately RMB 2,728.112 billion), accounting forgross domestic product14.5% of the total, which is the highest year since the relevant historical record was established in 1947. The actual debt figure is much lower than the 355 billion pounds (3,195.249 billion yuan) estimated by the UK National Bureau of Statistics in March.

(Article Source: Interface News)

(Editor in charge: DF118)

Solemnly declare: The purpose of this information released by Oriental is to spread more information and has nothing to do with this stand.


UK public debt reaches highest level since the end of WWII

Due to the effect of the coronavirus pandemic, the public debt of the United Kingdom stood at 303.1 billion of pounds sterling.

For the first time since the beginning of 1960s, the liability exceeds the size of the country’s economy, the second largest in Europe, as a result of the impact of the pandemic that affects the entire planet.

The huge sums that the Government has borrowed during the Covid-19 crisis brought the deficit to its highest point since the end of the Second World War, according to new figures for the 2020/2021 financial year, which closed last March.

The Office for National Statistics specified that the net indebtedness of the public sector, the government debt, reached 303,100 million pounds (almost 350,000 million euros).

This figure represents 14.5% of gross domestic product (GDP), the level highest since 1946, when the deficit reached 15.2%, it is an increase of the deficit of 57,000 million pounds sterling in the fiscal year, according to the newspaper Mirror.

In the postwar era, debt levels peaked after the 2008 financial crisis, when it reached 10% of GDP. The average deficit since 1970 has been 3.4% of the product.

In 2020 the public debt in the United Kingdom was 2,462,276 million euros, the 97.7% del PBI, which represented a growth of 239,581 million since 2019 when it stood at 2,222,695 million euros.

The government has spent billions of pounds propping up the economy since the pandemic began more than a year ago, in particular the debt was to pay salaries during the period when there were closures and strong restrictions to reduce the level of contagion.

KPMG Senior Economist Michal Stelmach stated that “the increase in debt is largely an unfortunate consequence of the government’s focus on protecting the economy as much as possible from the impact of Covid-19.”

“However, doing the opposite could have created lasting scars that would be much worse for fiscal sustainability,” the analyst clarified.

Stelmach noted that while borrowing has so far increased to cover the spending hike, the government will likely need to borrow to make up for a shortfall in the taxes it collects this year.


UK Gives Provisional Green Light to Merger of O2 and Virgin, Key for Pallete | Companies

Relief for Telefónica in the UK. The British competition authority, the CMA, has given a provisional green light to the merger of O2, the British subsidiary of the Spanish company, with Virgin Media, owned by the American LIberty Global. The operation is valued at 35,800 million and will create a telecommunications giant in the country, which with 46 million lines, between mobile, fixed broadband and television, seeks to threaten the historical leadership of BT. For this reason, the authorization of competition is key.

“A thorough analysis of the evidence gathered during our investigation has shown that the agreement is unlikely to lead to an increase in prices or a reduction in the quality of mobile services, which means that customers should continue to benefit from strong competition.” , has indicated the CMA. The competition authority, in this case the European Commission, has already thwarted a key operation of Telefónica O2, its sale to Hutchison in the spring of 2016.

Like the former, the integration of O2 and Virgin is key to the plans of the Spanish company and its president, José María Álvarez Pallete, in reducing debt. With the operation, teleco foresees a debt reduction of between 6,300 and 6,652 million euros, and an initial payment of 6,500 million euros. At the end of 2020, Telefónica’s debt was around 35,000 million, although the teleco pointed out that, with the pending operations, the merger of O2 and Virgin, and the sales of Movistar Costa Rica and the Telxius towers to American Tower, indebtedness would be around 26,000 million.

The operation was announced in May last year, in the midst of the pandemic, and a few months later the United Kingdom asked Brussels for the operation’s file, in view of its characteristics and the end of the post-Brexit transition process.

The CMA has indicated that its analysis has not focused on possible duplications in the retail markets, without considering whether the operation may reduce competition in the wholesale market, that is, in the rental of services to third-party operators.

Virgin rents lines to operators such as Vodafone or Three to complete its own networks, while O2 rents its network to alternative mobile operators. The CMA feared a price hike in these areas, but has provisionally ruled out this possibility, indicating that customers should continue to benefit from strong competition.

The final approval could take place during the month of May, according to industry sources, who point out that it is highly unlikely that the CMA could change the direction of its decisions. From the outset, Telefónica’s management has demanded approval without conditions, recalling that, in 2015, the United Kingdom gave the green light to a very similar transaction, the purchase of Everything Everywhere by BT, also without setting conditions.

Both partners have worked with that conviction. In fact, already in the second half of 2020, they completed the recapitalization of the joint venture, with the raising of more than 6,100 million euros between credits and bonds. Last week, Telefónica and Liberty announced the management structure of O2 Virgin Media. Thus, Lutz Schüler, from Virgin will be the CEO of the new operator, while Patricia Cobián, financial director of O2, will occupy the same position in the joint venture.

In addition, Liberty Global has accelerated in recent weeks the segregation of Virgin Media’s business in Ireland, which was not part of the agreement with Telefónica.

Telefónica and Liberty have argued that the merger combines the mobile strength of O2, with an ambitious 5G deployment, and the weight of Virgin Media in fixed broadband. One of the promises of both partners is the acceleration of the deployments of the next generation infrastructures, both mobile 5G and fiber. In this case, the Spanish group has highlighted that it will contribute its experience in the deployment in markets such as Spain and Brazil.

Telefónica shares started the session with slight decreases, amid the doubts that surround the markets. In the first minutes of trading, they are left around 0.7%, up to 3.71 euros. Various analysts have agreed that the approval of the merger of O2 and Virgin Media should be a catalyst for the recovery of the matildes.


The striking advice of an accused of laundering drug money for Argentina to pay the foreign debt

“Bitcoin is being used as a currency of value and replacing gold. Large companies and institutions are buying them. Blackrock, Tesla, they are doing it and Miami is passing their reserves. I would love to that Argentina has bitcoins, that we sell them in 10 years and pay the foreign debt. It would be great ”.

The analysis and the desire do not belong to any operator of the most famous and expensive cryptocurrency in the market, where very recently it was worth US $ 60,000 per unit. He developed it, not without enthusiasm, before the Federal Oral Criminal Court 1 of Bahía Blanca, Emmanuel Garcia (41). He is accused of laundering assets, originating in drug trafficking, precisely through the use of bitcoins.

García is the only one of the seven defendants who was released at the hearing dealing with the “Bobinas Blancas” case, an operation against the international commercialization of drugs developed in 2017 based on data from the DEA.

While the other six defendants admitted their guilt on the first day of the trial, García decided to defend himself. Therefore, in the debate, only testimonies related to their participation in the band were heard.

“That they say that bitcoin is used for money laundering is old. This has been said for a long time and it is a lie ”, he declared in a general way, after seeking to separate himself, individually, from the accusation. It is the one that links him with the criminal group made up of Mexicans, Argentines and a Colombian, Rodrigo Alejandro Naged Ramírez, murdered in 2018 in an apartment in Belgrano, for which his lawyer is being tried.

Rodrigo Alexander Naged Ramírez.

Garcia, a business administrator with a postgraduate degree in environmental management, testified for about 50 minutes and only accepted questions from his two attorneys. He said that he worked in banks and large firms, including an oil company that he resigned in 2015, to dedicate himself to bitcoin, the only cryptocurrency that existed at that time in the market. In a short time he managed to make a name for himself and have his own company, without depending on anyone.

He showed his pride for being “one of the first 5 or 6 players (players) in the country”, until achieving its trademark, “Constructor”, registered on the web. “I had the intention to promote the bitcoin industry and exchange, through my profile on Facebook and all public. I did not imagine myself in another job, until one day, they broke the door of my house, “he declared about the June 2017 raid on his apartment in Recoleta, where they kidnapped US $ 150,000 in a safe.

“There is something great here, you will know why,” he said that Federal agents told him while they detained him. García assured that he did not know what was happening until a few days later, when they took him to testify, along with other detainees, to the federal court of Campana. There a lawyer he knew was waiting for him and who convinced him to testify.

“You are going to have to say yes, if you are not going to stay blow, because they accuse them of illicit association ”, affirmed García that the lawyer recommended. “Did you do something with these people?” He asked him repeatedly, while showing him text messages on a phone. “That’s where the file fell, I had some Mexican clients,” he said before the Bahia court, which deliberates virtually.

According to García, he improvised his first statement before Judge Adrián González Charvay, in which “everything I said was true, except for the operations and volumes negotiated. I made it spicy enough for him to believe me ”.

The White Coils Operative.

The White Coils Operative.

He argued that he was only looking to trade bitcoins, “a public activity that pays taxes,” he remarked, but that the transactions with the Mexicans never materialized.

“In the cryptocurrency market, in 2017, it was impossible for 200,000, 300,000 dollars to be handled. There is no way I could absorb that volume. How do you imagine that I am going to go with that figure to a bar?” Garcia said.

Later, when deciding to prosecute the gang, the judge separated him from the rest, who was charged with drug trafficking, and he He charged him with money laundering, in addition to garnishing him $ 12 million.

“From there everything got complicated. It was bad, he couldn’t leave the country, “said García, who broke in several sections of his statement. “I do not appear in any transaction anywhere and four years later they drag me here,” said the accused, crying, who defined himself as “Quite spiritual, vegetarian and sociable.”

At the end of the statement, one of his lawyers read him some of the text messages that link him to a “lawyer” who would be the link with the drug traffickers.

García explained that he met “three or four times” with him, sent him the address, a sort of CBU in which bitcoins should be deposited, but he never had any answers.

“He would connect later, but during the time of the operation, I did not receive the bitcoins and that is why I was not going to deliver the money,” defended the defendant.

When his interlocutor tells him to see himself “in the same place,” García argued that he was referring to a trial operation that could not be carried out.

The operation to incinerate the drugs seized in Bobinas Blancas.  Photo Martín Bonetto.

The operation to incinerate the drugs seized in Bobinas Blancas. Photo Martín Bonetto.

With his statement, the stage of receiving testimonies during the debate was closed, so this Wednesday at 1:30 p.m. the argument of the prosecutor Gabriel González Da Silva was to begin. It started around 2 p.m., but within a few minutes a power outage forced its postponement to April 21.

From the prosecution, they assure that there are elements to maintain the accusation against García. They also argue that this trial will be a leading case in money laundering through cryptocurrencies, for being the first in the country.

“I recognize myself as a co-author of the charges made by the prosecution and the complaint,” said Max Rodríguez Córdova in the first place on February 23 last (48). He was followed, with the same admission of guilt, by Jesús Madrigal Vargas (33) and Gilberto Acevedo Villanueva (33). The three are Mexican and testified from the same room in the Ezeiza 1 Penitentiary Complex.

The same path that the Mexicans later followed the Mendoza brothers Darío Maximiliano (33) and Marcelo Rafael Cuello (47), housed in the Marcos Paz prison. Finally, from his home in Necochea, Amílcar Darío Martino (61) also incriminated himself.



The Covid crisis triggers the public deficit from 2.8% to 10.97% of GDP | Economy

Facing the Covid-19 crisis has multiplied the budget deficit of the Spanish public accounts from 2.86% at the end of 2019 to 10.9% at the end of 2020. An increase of 87,435 million euros, reaching 123,072 million, as detailed this Monday by the Minister of Finance, and spokesperson for the Executive, María Jesús Montero, at a press conference.

During the presentation, the head of the Treasury stressed that nine out of every 10 euros of increase in public spending have been derived from the plans promoted to mitigate the coronavirus crisis. The most important item, of 44.907 million is directed to defray the economic programs. This package comprises the 21,520 million destined to pay the ERTE, the cessation of activity of the self-employed and the temporary disability due to the Covid losses; 8,282 million in social and health expenditure of the autonomous communities; 7,791 million to cover the exemptions of contributions to the Social Security of the self-employed and affected by ERTE and 7,312 million of other items to contain the Covid.

Thus, finally, the year closed with a deficit of 83,051 million euros in the central administration (7.49% of GDP); 2,306 million in the autonomous communities (0.21%); 29,685 million in Social Security (2.65%) and a surplus of 2,870 million in local corporations (0.26% of GDP). The public administrations as a whole have a budgetary imbalance of 113,172 million (10.08% of GDP). This is an increase of 217.8%.

Adding the 9,878 million in aid to financial institutions, which include the impact on Sareb’s public accounts, the deficit culminates in 123,072 million (10.97%). An unprecedented increase of 245.3% compared to 35,637 million at the end of 2019.

The central administration has assumed about 70% of all the disaster, among other things by making extraordinary injections to the autonomous communities, as was done with the Covid fund of 16,000 million for health and educational expenses and compensation for the loss of collection; the 20,000 million transferred to Social Security and the 2,300 million paid to the public employment service, the SEPE, for benefits and unemployment benefits.

Fall in collection and rise in spending

“The data on the closure of the public deficit is better than had been predicted by national and international analysts and below the objective communicated by the Government to Brussels,” he stated, compared to the 12% previously provided by the European Commission, or the IMF, which was targeting 11.7%.

Moreover, until now, the official government forecasts pointed to the public deficit jumping from 2.8% at the end of 2019 to 11.3% at the end of 2020, as a consequence of the unprecedented crisis opened by the crisis of the coronavirus, which has triggered public spending to alleviate its health, social and economic effects while reducing the collection (which the Executive had been estimating that it would yield 7.6%). Thus, government spending rose by 53,070 million, while public resources have decreased by 24,487 million (-5%). All in all, the collection falls less than the GDP, the income of the Tax Agency is reduced by 8.8% compared to the -9.9% year-on-year decline in activity. Something that Montero has attributed to the income protection measures promoted by the Government.

Such a budgetary imbalance has been financed via public debt, which has increased its volume by 112,500 million euros in 2020, reaching 1.3 trillion euros, jumping from 95.5% to 117.1% of GDP, somewhat below 118.8% initially estimated by the Executive.

“The budget execution data that we present today and we are going to send to the European Commission show the difficult situation we are experiencing,” Montero summarized, referring to the high cost of the pandemic. “The decision of the European Commission to suspend fiscal rules showed that Europe as a whole, the world as a whole, is facing the crisis in a different way” than was done in the previous one, when the priority was to promote policies of austerity, Minister Montero has celebrated.

The impact of Sareb

Despite this, the final data has worsened substantially after Eurostat even forced the Government to include in the perimeter of public accounts the poor results of the asset management company from the bank restructuring, Sareb.

Specifically, the European statistical office has forced to recognize some 35,000 million euros from Sareb in the calculation of public debt, which has ended up reaching 120% of GDP, and to add almost 10,000 million extra of deficit, given the public participation of the Been in the so-called bad bank.

Without calculating the bad bank, the public deficit would have remained at 113,172 million euros, 9,878 million less than the final balance, standing at 10.09% compared to the 10.97% required by Eurostat.

Suspension of fiscal rules

The Bank of Spain had recently estimated that the deficit had risen to 10.8% at the end of 2020, anticipating that, according to its central scenario, the budget hole would be lowered to 7.7% this year, to 4.8% in 2022 and to 4.4% in 2023.

Despite the fact that, under normal conditions, any figure above 3% is equivalent to activating the Excessive Deficit Protocol of the European Union, which imposes adjustments to control the fiscal hole, last year the community authorities activated the so-called escape clause, suspending the deficit targets for 2020 and 2021. Brussels is now committed to expanding this margin during 2022, although the measure must be supported by the partners this spring.

Despite this additional margin, the Bank of Spain and the Independent Authority for Fiscal Responsibility (Airef) have been pressuring the Government to present a consolidation plan in the medium and long term that allows the public accounts to be cleaned up at a good pace once the worst part has been overcome crisis, in order to have a reliable roadmap for European partners and markets. It should be remembered that the almost 150,000 million euros in direct aid and soft loans that the EU will grant to Spain to undertake its Recovery Plan will also be conditional on compliance with fiscal rules once deficit targets are reactivated.


The corporate debt party will survive the storm | Opinion

Rising government debt yields are driving up corporate borrowing costs. While this could dampen the buzz in the $ 40 trillion global credit markets, it won’t end the party.

The deployment of vaccines and US President Joe Biden’s $ 1.9 trillion stimulus package are raising expectations for growth and inflation. As a result, the yield on 10-year US government debt has risen more than 70 basis points so far this year, to around 1.64%. When this benchmark borrowing cost goes up, so do others: The median yield on investment-grade U.S. corporate bonds has risen by nearly a fifth since early February, to 2.27%, according to a Bank ICE index. of America.

Increased yields on safer bonds mean there is less incentive to buy riskier corporate debt. There have been outflows of long-term corporate bond funds from the United States in 13 of the last 15 weeks, according to EPFR. But so far the pullback is orderly: the premium that investors demand to hold corporate securities instead of sovereigns has not moved much. For example, the average difference between the yields of US Treasuries and junk bonds, which include issuers like automaker Ford Motor or Netflix, has risen 14 basis points since mid-February, to 355 basis points, according to ICE data. By comparison, this spread widened by nearly one percentage point in 2013 after then-Federal Reserve Chairman Ben Bernanke raised the possibility of reducing bond purchases.

This is because investors expect a rebound in economic growth to boost corporate earnings, limiting defaults and reducing debt burdens. Analysts at UBS, for example, forecast that the net leverage of risk-rated US companies will decline from 4.1 times ebitda at the end of last year to three times by the end of 2021.

And the cost of debt service has never been lower. High-performing US and European companies will generate on average enough EBITDA this year to pay 5 and 6 times interest costs, respectively, the Swiss bank calculates.

Credit investors can also count on central banks. ECB President Christine Lagarde has said she will increase bond purchases to keep financing conditions flexible. Furthermore, expectations of an acceleration in consumer prices mean that the inflation-adjusted profitability of the 10-year US government debt remains negative. This means that investors will continue to need to own corporate bonds to obtain a decent return.

The authors are columnists for Reuters Breakingviews. Opinions are yours. The translation, of Carlos Gomez Down, it is the responsibility of Five days


The ECB turns to Italy in its extraordinary debt purchase plan | Markets

Italy is not the euro country to which the ECB has acquired more sovereign debt in its extraordinary anti-pandemic program (PEPP), launched in March of last year. It is Germany, for a volume of more than 188,000 million euros. An amount that corresponds to the fact that Germany is by far the country that has the most weight in the capital of the ECB, 21.43% of the total.

But the extraordinary status of the PEPP program does not lie only in its voluminous amount – forecast at a total of 1.85 trillion euros – but in the option that the ECB has given itself of having enough flexibility to deviate in its purchases of the so-called capital key, for which it must acquire sovereign debt in proportion to the weight of the issuing country in its capital. And in that unusual freedom that Christine Lagarde has given herself, Italy – with a debt-to-GDP ratio close to 160% – is the great beneficiary.

The ECB has acquired Italian sovereign bonds in the PEPP program for 136,310 million euros, at the end of January, which is equivalent to 17.75% of the total. The percentage is 3.9 percentage points higher than the 13.81% of the capital that corresponds to Italy in the ECB. This is the biggest deviation from that capital rule among euro zone countries. Above 3.13 percentage points in which German debt purchases exceed the capital key or 2 points in the case of Spanish sovereign debt. The PEPP has allocated 11.7% of its purchases of public debt to Spain. Above 9.69% of Spanish capital in the ECB.

The Draghi government will allow to reduce the pressure in favor of Italian bonds

These percentages of the shareholding distribution in the ECB were reviewed on February 1 on the occasion of the formalization of Brexit. Thus, all EU countries are part of the capital of the ECB and those of the euro zone account for 81.32% of the shareholding. But if the composition of the ECB’s capital were adjusted only to the euro countries, Italy would once again be the great beneficiary of the PEPP, even more clearly.

In that case, and according to calculations by Mitsubishi UFJ Financial Group – Japan’s largest bank – the ECB would continue to deviate by 2.18 points in favor of Italian debt from the new capital key, which would rise to 15.55% for the country. The deviation in favor of Germany would instead be reduced to 0.42 points and 0.77 in the case of Spain.

The ECB has made a clear commitment to making its debt purchases more flexible in the face of the current crisis, which has served to keep state financing costs at bay. The newly launched government of Mario Draghi has triggered investor interest in Italian debt and will undoubtedly be a support so that the ECB does not have to go much further in its purchases in favor of Rome, without forgetting that Italy will be the country of the euro that more debt will issue this year.


Works, signings and a pandemic shoot up the debt of Real Madrid and Barcelona | Companies

FC Barcelona and Real Madrid, the ocean liners of Spanish football and leaders in turnover at the European level, see how the pandemic puts their financial foundations to the test. The accounts of both show some similarities and quite a few management differences, but reflect balances stressed by the situation.

Both have skyrocketed their net debt: Barcelona has doubled it to 488 million and Real Madrid, which had zero debt, has increased it to 354 million.

There are shared factors in this: both have resorted to bank financing to alleviate the drop in income and cash. The white club has multiplied it by four to 205 million, of which 153 are long-term. In its economic report, it recognizes that it does so to “compensate for the cash losses caused by Covid-19.”

Barcelona already had bank debt, but Covid has increased it and anticipated its maturities, placing itself in a more stressed position. If in 2019 this liability was 72 million in 2020 it touched 280, after having 117.7 million of a credit policy, in addition to other loans for your project Barça space remodeling of the Camp Nou environment.
Precisely the works are shown as a burden for both. Madrid recognizes a debt for which it undertakes at the Bernabéu of 114 million, which does not include its net debt. This article does take it into account for comparative purposes, since Barcelona does include the works of Barça space in his, valued at 110 million.

Maneuver funds

The situation in the Catalans is more problematic when it is observed that 266 million of their bank debt expire on June 30, and that their working capital is negative at 602 million. This “could raise doubts about the application of the going concern principle,” reads his report. Real Madrid also has a negative 112 million, 50 more than a year earlier, due to investments in stadium, players and treasury losses. But his memory points out that the loans without having and the treasury forecasts “mitigate all doubts” about the future of the club. Barcelona also includes mitigating factors, but while it claims to have 28 million unused credits, its white rival has them for 328.

Another important item in both is the debt for the signings. This is higher, again, in Barcelona, ​​with 323 million, of which 126.6 are short-term. In Madrid there are 204 million, of which 128 are due this year.

With all the items added, the Catalans have a net liability of 820.6 million, 57% more than the 523 for the Madridistas. To calculate the net debt, other liabilities are not included, such as commercial creditors, and mitigating factors such as pending collections from third clubs or the treasury are taken into account. With all this applied, the 488 million net debt of FC Barcelona and 354 million of Madrid result.

But the situation will get a little worse this season. Real Madrid, which last won 300,000 euros, expects losses of 70 million. Barça, in the hands of the management board and in an extreme situation, has not budgeted the result of this year, but losses of more than 33 million would put its own funds in negative. The future board of directors, which will have to come out of the next elections, will have an urgent task to solve.