bank

The judicial process for alleged fiscal fraud and money laundering against family members of the President of Catalonia between 1980 and 2003 Jordi Pujol continues. This Wednesday, Pujol testified before Spain's High Court, 'La Audiencia Nacional', and gave further details on his father’s legacy, some €4 million which it is alleged was kept in Andorra for 34 years without informing tax authorities. He insisted that his father, Florenci, left the sum for Jordi Pujol’s wife and children, not for him, due to the risk of retaliation for his political activities in the years after Franco’s death. The founder of the centre-right Catalan nationalist coalition CiU in the 1970s also set himself apart from some of his sons’ businesses and denied being a corrupt politician. His wife, Marta Ferrusola, refused to answer any questions from either the judge or the prosecution.

Not only parties have taken an active role in this intensive electoral campaign: the banking sector, Spanish diplomacy, the European institutions, international leaders, businesspeople associations and even the sports and scientific fields have had their say. Some have softened their warnings, some have signed joint letters, but all of them have reinforced the historic element of the upcoming 27-S elections. Whatever the situation may be, what is certain is that the moment is exceptional and that the elections are being closely watched internationally.

The Bank of Spain Govenror, Luis Maria Linde, corrected his previous statement and admitted that “freezing bank accounts” if Catalonia becomes an independent country is a very “improbable, almost impossible” situation. Linde’s clarification comes after his statements last week assuring that Catalonia would face a ‘corralito’ in the event of independence. He added this Wednesday that he wasn’t “that worried” about this possibility nor is “anybody else in Europe”. Following Linde’s warning, a group of six prestigious economists asked for the Governor’s resignation and recalled that Linde’s task should be “promoting financial stability” rather than “influencing thevoters’ decisions”.

The collaboration will bring to Catalonia some of the masterpieces of the great civilisations that are currently on display in the British Museum. Most of them are pieces that are rarely loaned to other museums and that will be seen in Spain for the first time ever. The four projects will focus on Medieval Europe, Ancient Greece, the Pharaohs of Egypt and the Phoenicians. Between 2016 and 2020, the exhibitions will be displayed in Barcelona, Girona, Tarragona, Lleida, Palma and three other ‘CaixaForum’, the centres that normally host the exhibitions promoted and organised by ‘La Caixa’ Bank Foundation. The Bank Foundation of ‘La Caixa’, which is the biggest bank in Catalonia, is the section of the bank that focuses on welfare projects committed to society, education, science, the arts and culture.

International experts have participated in a day of debate over the hypothetical scenarios and the possible consequences regarding membership or expulsion from the European Union of an independent Catalonia. The panellists ruled out automatic expulsion, as well as automatic membership, in any scenario. Graham Avery, Senior Adviser of the Brussels-based think tank European Policy Centre (EPC), underlined that "the most important" element in deciding what would happen to an independent Catalonia would be "the process" through which it achieves this independence. If it was carried out with the agreement of the Spanish Government, the transition towards full EU membership would be quite fast and smooth. If it was done unilaterally, then a wide range of scenarios are possible, with risks and costs rising. However, a majority of experts have stated that even in the worst case scenario, the costs would not be as high as the Spanish Government is saying. In addition, they affirmed that the EU is likely to adopt a pragmatic approach and that a transition regime is likely to be set up, with basic policies and freedoms not being interrupted.

The Spanish banking giant BBVA, which purchased Catalunya Banc last July, is now proposing to shut down 400 branches of the acquired bank and reduce its staff by 2,000 employees (out of a total of 4,400 currently employed), according to trade union sources. At the end of April, the BBVA announced it would close 285 Catalunya Banc branches and reduce the staff by about 1,700 people. However, this Wednesday the Spanish bank has released higher figures and with this action is kicking off the official negotiation period with trade unions before it registers a mass layoff. The adjustment is to start already this year and would be completed by 2017, with the main part of it taking place during 2016. In theory it should only affect the branches that originally belonged to Catalunya Banc (CX) and the employees who were originally working for the former Catalan savings bank, and not those of the BBVA working in Catalonia. In April, Angel Cano, who is the CEO of the Spanish bank, stated that the adjustment would take place within the new integrated structure, not only in regard to the former CX branches and staff.

Last April, Banc Sabadell filed a takeover offer on 100% of the shares of the UK lender TSB, partially owned by LLoyds. On Monday, the Catalan bank announced it had already exceeded the 75% minimum bid of the takeover offer, reaching 81.23% of TSB shares. However, this percentage is still likely to increase in the upcoming days, since there are 14 remaining days till the end of the takeover's acceptance period. In order to fund the transaction, the Catalan corporation will carry out a €1.61 billion capital increase (€1,607 million). Current shareholders have a preference call in this capital increase. Banc Sabadell, is one of the few banks to emerge stronger from a financial crisis that has redrawn Spain’s banking sector. Unlike many of its Spanish rivals, the bank is in good shape reporting a 50% increase in annual profits at the end of 2014 to €371.7 million. Since 2007, it has doubled in size and is now Spain’s 5^th largest bank. It achieved this mainly through an energetic programme of acquisitions in Spain and abroad. 

BBVA CEO, Angel Cano, announced on Wednesday a 3-year plan to restructure the bank's presence in Catalonia after the integration of the previously nationally-owned Catalunya Banc, which was purchased last July. The bank's 'number 2' explained they will shut down 285 branches of their network in Catalonia and lay off 1,700 employees, which is 20% of the local workforce including Catalunya Banc's staff. At the end of 2014, BBVA had 639 branches of its own in Catalonia and was working on integrating the 728 branches from the recently-purchased entity. According to the new plan, 150 branches from Catalunya Banc will be closed. According to Cano, the acquisition of the Catalan bank will start bringing positive figures to the Group’s results by 2016.  Furthermore, it is strategic, since the bank will roughly double its presence in Catalonia and will add 1.5 million clients, becoming Catalonia’s second-largest financial entity.

Last week, TSB announced Banc Sabadell's interest in purchasing all of the shares of the British bank, which is partially owned by Lloyd's. The board of the 6^th largest bank in the United Kingdom then said they would welcome the Catalan bank's takeover bid, which they set at £3.40 per share (equivalent to €4.80). This meant that Banc Sabadell would buy TSB for £1.7 billion, or €2.4 billion. At that time, the Catalan bank denied any definitive agreement had been reached and simply confirmed that there were some talks in progress. A week later, Banc Sabadell has finally announced and approved the takeover bid, on the same terms released last week. In order to fund the transaction, the Catalan corporation will carry out a €1.6 billion increase in capital. This purchase will significantly strengthen Banc Sabadell's internationalisation, dramatically increasing its presence in the UK and in London's financial circles.

TSB, which is the seventh-largest bank in the United Kingdom, confirmed on Wednesday that they have received a preliminary takeover bid of £1.7 billion (equivalent to €2.35 billion) filed by Banc Sabadell. The Catalan bank would have offered £3.40 per share (€4.80) and would be ready to buy the entire British financial entity, 50% of which is still owned by Lloyds. Sources from Sabadell have confirmed takeover talks, but they stressed that they are still preliminary in nature. After the news was released, shares of TSB increased by 26.4% while those of Banc Sabadell dropped by 7.5%, causing the Spanish Stock Exchange Authority (CNMV) to temporarily suspend trading in the Catalan bank. When Banc Sabadell returned on the stock market, its shares continued to decrease, dropping by 10.5%, but they partially recovered and ended the day with a 6.6% loss.

Every day in every hospital in the world blood is needed. The only way to get it is from donations, since blood cannot be created artificially. Each altruist action may serve to help three different patients. In Catalonia, for the system to work optimally 1,000 donations a day would be needed but the average donation figure is lower. Everyone can donate if they weigh over 50kg, since a donation is 450ml of blood and a minimum weight is required. Men can do it four times a year and women three times. There are now various mobile units that travel throughout Catalonia to make donating more accessible to donors.

The Constitutional Court has accepted to debate the Spanish Government's last appeal against the Catalan Executive's tax on bank deposits, which has to be paid by financial entities. Such a decision represents the automatic cancellation of the tax for an initial period of 5 months. Catalonia approved such a measure in December 2012 and two weeks later, the Spanish Government approved its own tax with a 0% rate, so it was 'de facto' cancelling the regional taxes. However, instead of compensating Catalonia for having cancelled the tax – as it is legally obliged to do – the Spanish Government refused to do so, since it argued that the tax had not entered into force yet and took the issue to the Constitutional Court. The Court initially accepted the Spanish Executive's appeal and the tax was temporarily suspended, but in May 2013 it was lifted. In July 2014, the Spanish Government modified the tax with a 0.03% rate and in December it presented a new appeal against the Catalan tax, which brought in some €680 million in 2014.

The Catalan Government presented on Tuesday its budget proposal for 2015, which has a €22.48 billion spending but only a €19.98 billion revenue. The Catalan Finance Minister, Andreu Mas-Colell, insisted that spending cannot be further reduced since no further budget cuts can be implemented without seriously damaging public services. In fact, the current budget keeps social spending levels of 2014, which represent 71.2% of the new budget. In addition, public employees' full salary will be restored, after it had been lowered for the last 3 years. The 2015 budget posts a 0.7% deficit (€1.44 billion). However, there is a €2.5 billion difference between spending and revenue that should mostly be covered with €2.19 billion from Spanish Government's pending debts. However, Mas-Colell does not rule out being granted a higher deficit target, since the current one is "unfair" and is not in line with the Catalan Government's austerity measures already adopted. Furthermore, the Spanish Government has reduced funds from the regular funding scheme by 10.7% between 2013 and 2015, a €2 billion reduction, despite the economy is recovering. 

Catalan supermarkets and charities are working together to fight against the 1.18 million tonnes of food wasted each year in Catalonia. With 1.3 billion tonnes of food wasted each year worldwide, the issue of excess food is becoming increasingly important. Of the global figures, 89 million tonnes come from the EU, while 8 million come from Spain, making it the 7^th highest in Europe. Of Catalonia’s share, the equivalent of 34.9 kg is wasted per person on an annual basis. One approach in reducing this figure is being undertaken by supermarkets, which are responsible for 16% of total excess food in Catalonia, equivalent to 41,600 tonnes of food a year. Approaches vary from locking bins to reducing prices, and relabeling food products. Moreover, Catalan charity Banc dels Aliments has been active in the campaign against wasting food, running a six-year long annual event of redistributing donated food. 

Early on Friday morning, the "Gran Recapte" ("The Great Collection") - a campaign to collect food donations in order to redistribute it to people in need – began across Catalonia, and will be underway until late on Saturday evening. Organised by Catalonia’s main food bank, El Banc dels Aliments, it collects donations of non-perishable food products such as milk, flour, oil, beans and pasta from organisations and individuals, with the cooperation of many markets and supermarkets. With the help of 20,000 volunteers, this food will then be shared out among up to 250,000 people in the coming weeks. The new President of the Food Bank, Eduard Arruga, believes this year people are more aware of the campaign than ever. In Barcelona, it began at 9.30am and, in the neighbourhood Sants, attendance was already high.