[ad_1]
The self-proclaimed Mexican investment group MIG and led by Antonio del Valle details the preparations for proceeding to international arbitration against Spain, considering that the then-presided government by Mariano Rajoy "violated" the bilateral investment treaty with Mexico in According to the financial source, the MIG is composed of 44 individuals and 10 companies and investment funds that have, overall, about 4 million euros. % of the capital of Popular, for a value of about 470 million euros.
The group of Mexicans denounces that the way in which the entity was solved resulted in "the complete destruction" of its investments. On January 22, these investors sent a letter to the Spanish government notifying them of their intention to initiate an international arbitration process for their role in the resolution of the bank.
From this notification was opened a six-month reflection period, which culminated this Sunday, July 22, during which the Mexican group and the Spanish government should discuss and potentially resolve the dispute between the parties.
The MIG undertook to initiate arbitration under the Mexico-Spain Treaty if, after the bargaining period expired, no agreement was reached.
The group led by Antonio del Valle must now find a forum to start arbitration. In this sense, the International Center for Settlement of Investment Disputes is one of the bodies likely to be evaluated.
Loss of confidence
The MIG considers that the Spanish Government "has not discharged its obligations" the Agreement for the Promotion and Reciprocal Protection of Investments between the United Mexican States and the Kingdom of Spain (Mexico-Spain Treaty), entered into force in 2006.
More specifically, the group of Mexican investors denounces the fact that the government of Mariano Rajoy actively participated in the design process and decision-making that led to the sale of Popular at a price "well below its fair market value", an institution that they considered financially "solvent" and which had met their capital needs without public assistance. "
The implementation framework, which was carried out through the Orderly Banking Ordinance Restructuring Fund (FRAB), breached the treaty between the two countries by not giving investors any notice or opportunity to to be heard and not acting in a transparent manner, including the refusal to disclose the full content of the decision and its rationale.Also, Del Valle and the rest of the investors claim that Spain has ignored existing alternatives proposed by the private initiative that would have avoided the resolution, including the commitment of institutional investments and even MIG itself to inject capital into Popular or the sale of certain assets to strengthen
They also consider that active measures were taken which damaged the financial position of the entity prior to its resolution and which led to a withdrawal "brutal and unprecedented". Billions of euros, as well as public announcements that damaged the reputation and on the other hand, the MIG ensures that the auction launched by the government and the FROB to determine the buyer of Popular started under "inadequate" conditions. "Only a few Spanish banks were invited to bid and then the interested parties received inadequate information and hours, so, predictably, Santander was the only bidder and won less than 24 hours later." writing in which the facts denounced are detailed.
The Mexican group believes that the expropriation of its investment was not made for a public interest purpose, but to Santander's benefit.
[ad_2]
Source link
