29 January 2015 – Cinco Días
Echegoyen strengthens his team with a man from Barclays
Jaime Echegoyen has made his debut as the Chairman of Sareb, following the surprise resignation of Belén Romana on Monday, by analysing the entity’s provisional accounts for 2014.
In a meeting on Wednesday, the Board of Directors estimated that Sareb will close the year will total revenues of €5,000 million and an EBITDA of €1,000 million.
The final figures will be subject to a ruling by the Bank of Spain, which has not yet published the definitive accounting regulations that will govern the bad bank’s results; it is expected to require that an extraordinary provision be applied to the company’s accounts.
Sareb’s turnover in 2014, as valued by the company itself in a statement, exceeded the amount recorded in 2013 by almost one third. This, says the company “shows the capacity” that it has “both to generate resources through the management and sale of its assets, as well as to assume the commitments of debt cancelation”.
Based on last year’s accounts, Sareb will have repaid €3,416 million of the debt issued to acquire its portfolio, i.e. more than the €3,000 million initially envisaged, of which €2,916 million has already been paid; the remainder will be paid in February. Moreover, the company has made interest payments amounting to €1,135 million on that debt.
Once this process has been completed, Sareb will have repaid €5,416 million of its debt, which has the backing of the state, in just two years.
“Sareb is fulfilling its main objective, which is to manage and sell its portfolio without generating higher costs for the taxpayer”, explained Jaime Echegoyen at the first ordinary meeting held by Sareb’s Board in 2015.
Almost €1,000 million of the total revenues related to the sale of 13 wholesale portfolios, primarily to international investors.
“Although we do not yet know the accounting framework that will be applied to our results in 2014, we can say that the company has achieved the objectives that were set for it last year, and has deepened its strategy for the generation of greater value from the portfolio”, said Echegoyen. “We have a highly skilled workforce that this year has managed more than 10,700 proposals from developers for example; furthermore, the gradual entry into operation of the new contracted servicers will allow us to improve efficiency and provide an increased commercial focus”, he added.
Echegoyen’s first appointment
In parallel, Sareb’s Board of Directors approved a proposal to strengthen its management team, which has lost six members, including Romana, in the last 14 months (in addition, three directors have been replaced).
Juan Ramón Dios Rial will now join as the company’s Director of Recoveries and Restructuring. He comes from Barclays, where Echegoyen was previously CEO.
According to Sareb, Juan Ramón has extensive experience in the management of risk and the restructuring of debt relating to the real estate business. The new director will take over the role currently held by Enrique Saiz, who will continue to collaborate with the company.
Original story: Cinco Días
Translation: Carmel Drake