A new expert report contributed to the “popular case” in the final phase of the case. Judge of the National High Court Jose Luis Calama received an analysis by the experts of the Bank of Spain on the valuation of an extinct enterprise in order to recalculate Coverage gap at the end of 2015from which it is concluded that the authorized bank should have reflected losses of almost 1,020 million eurosinstead of a profit of 106 million euros. However, this assessment comes with a warning that the data they have processed is “incomplete”, among which are “many inconsistencies, flaws and inconsistencies”.
This new report, dated 9 September, to which La Información had access, is in response to a request for an extension made last March by the investigating judge regarding report submitted on September 14, 2021 on awards (property). The head of the Central Instruction Court No. 4 demanded a new examination, hearing as a witness the inspector of the European Central Bank (ECB) Jesus Fernandez Martinez Usanowho approved the loan restructuring report prepared by his team and emphasized that the financial institution had a reserve deficit, which he estimated at from 1,100 to 1,350 million eurosin connection with the release of reports, which would be done in violation of the law.
Thus, on demand Anti-Corruption Prosecutor’s Officethe judge asked the supervisory authority’s experts to expand two reports to recalculate the deficit as of December 31, 2015: one dated April 8, 2019, which stated that Banco Popular “was not unfeasible” during the period of a capital increase of 2,500 million euros in May 2016 on behalf of Angel Ron; and another dated December 14, 2021 by estimate. The “revision” of the first exam was taken on June 13, and the original conclusion was changed, even stating that Popular was supposed to post a loss of $1.194 million. instead of a profit of 106 million euros, given that the risks of refinanced accredited before December 2016 were not properly classified. Santiago Ruiz Clavijo D Paul Hernandez They ratified this new criterion before a judge on 14 September.
The extension of the second report was granted to the judge two weeks ago and its ratification by the experts Teodoro Fernandez Hernandez D Alvaro Lopez Gonzalez, in court, will take place on November 15, official sources told this newspaper. The 74-page document – 30 of which correspond to the study of bank accounts adopted in June 2017, and the rest of the attached documentation – states that if “least impact scenario (maximum tax effect)”, the consolidated result for the year will change from a profit of 105.93 million euros to a loss of 1,019.9 million euros.
The conclusion, which he draws with some caution, noting that, despite the additional information provided by Banco Santander, the “heiress” in buying Popular for one euro, “qualitative” the inventory data provided is not enough, which, as the experts add, “was decided to obtain an estimated minimum deficit indicator” and was used “possible alternatives” so that the calculated lack of reserve amounts to a “lesser amount”.
In this sense, the experts have already warned in a letter sent to the judge after they learned about the request for an extension, which this digital one also read, of the difficulties in carrying out an expert opinion. Thus, they indicated that can’t re-evaluate the initial accounting value of the seized property in the “minimum reliable way” for non-compliance with the requirements of the accounting policy; what a modification Circular 4/2004 of the Bank of Spain, on the rules of public and non-public financial information and financial reporting models that came into force on October 1, 2016, presented change in accounting those awarded, resulting in a change to the Banco Popular Accounting Policy Manual; or what was “revaluation” assets, especially in the category of land.
After that, the experts calculated that the initial recognition deficit of seized assets (real estate, houses, offices, land, farms) is €229.81 million. With regard to the coverage deficit, the time on the balance sheet exceeds the expected average period in accordance with the sales policy, which, according to experts, cannot be recalculated in the same conditions as the ECB, due to changes in regulatory requirements. Bank of Spain – from €810.4 million. To this we must add that with the entry into force of Decree-Law 2/2012 on the restructuring of the financial sector – a standard that is still in force – some minimum coverage percentage for financing and sequestered assets or received to pay off debts related to the real estate sector that has existed since 2011. Considering the current situation, the officials of the body heading Pablo Hernandez de Kos indicate that the deficit will be 348.4 million euros.
With regard to asset “revaluation”, the inspection team re-evaluated a sample of previously selected borrowers (82 assets) and selected 21 of them, to which it applied the standards in force as at 31 December 2015. according to experts, overdraft is from €219.69 million. All this adds up to a common EUR 1,608.3 millionwhat if 30% is applied, which should be applied to “approach” to “fiscal consequences”, the adjustment €1,125.83 million. Thus, according to experts, if we subtract 105.93 million profits from this amount, which were reflected in the financial statements for 2015, we get 1,019.89 million euros in losses.
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