2023-04-21 20:15:59
The American investment fund Blasket Renewable Investments LLC has requested the activation of the ‘default’, that is, the consideration that the Kingdom of Spain is in terms of ‘default’ against world markets for four bond issues on which that firm maintains a dispute with Spain for the change in the conditions of the remuneration to the old renewables.
According to various sources, Blasket wants Spain to speed up the payment of a debt issue of about 248 million euros (about 226 million euros) maturing in 2029, after the country did not reach an agreement for about 1,200 million of dollars (about 1,094 million euros) in arbitration awards for cuts in the past to premiums for renewable energy. According to Bloomberg’s EP, the fund noted that Spain’s non-payment has triggered cross-default provisions in the bond contract that mean the country is in technical default.
Specifically, this claim has to do with the awards in renewable investments for the measures adopted by the Government of the PP in 2012 and 2013 that led to claims before the ICSID, fundamentally, based on the Energy Treaty. Previously, the PSOE government of José Luis Rodríguez Zapatero already applied the first cuts to premiums for renewables.
However, the Government has clarified that the possible claim “has nothing to do with the State debt.” Sources from the Ministry of Economy told Europa Press that any initiative, by any channel against the Kingdom of Spain based on these awards, will have “a response in the appropriate sphere because Spain’s position is very well established and of course it has nothing to do with the state debt.
The same Ministry sources specified that it has been “a long process” in which Spain has logically defended its interests. The legal basis for claims within the EU has been excluded because the CJEU concluded that investment arbitrations within the EU are invalid, since investment protection standards are ensured by European regulations. “However, as always happens with awards, there are other types of interests of those who want to make a profit,” added the ministerial sources.
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