Club news

THE RELATIONSHIP WITH THE BANKS

22 Jun 2013
One of the two keys to settle the agreement with the creditors is the relation with the banks; a recent report affirms that within the last decade Depor have paid €74 million to two banks in terms of capital repayment plus interests.

It was always said that Deportivo have a solid relation with banks  Novagalicia Banco and Banco Gallego, however both entities were the ones that blocked the  lifting of the embargo over the money coming from the TV contract [€9 million]. This unexpected move is putting Deportivo in a delicate position, because the judge that’s managing the cause only unblocked €3million, and the club needs the rest in order to cover the unpaid wages of the players, something that’s crucial at this moment.

The position of the banks was considered as strange, mainly taking in mind the information revealed by newspaper La Opinión A Coruña during this week. The source wrote that Deportivo have been one of the best clients of both banks within the last decade.

At the beginning of the year the debt with Novagalicia Banco was calculated in €26.54 million, but it turns out that it’s only the third part of the €63 million subscribed a decade ago, since then the club has paid €42 million in terms of capital repayment plus €12 million in interests.

In the case with Banco Gallego, Depor subscribe €24 million and at the beginning of 2013 the debt with them was calculated in €9.49 million. So, within the last ten years the Galician club has paid €11 million in terms of capital plus €6 million in interests.

In resume, Deportivo have already returned €54 of the €87 million subscribed with the banks, and paid other €20 million in interests. In the meantime both banks were part of the disaster of the Spanish banking system that dragged losses for €3,000 million as part of the construction business. La Opinión wanders why the banks were so soft with the clients that led to the disaster while, at the same time, they are so strict with Deportivo.

The hope is that the banks will welcome with open arms the proposition of Deportivo regarding of paying the full debt in twenty years, just when other clubs in administration ended only paying the half of the debt. So far there’s no official response from the creditors, the club needs to close the deal in the coming weeks in order to unblock the money from the TV, a crucial resource in order to survive.

ARCHIVE NEWS JUN/13

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