UK seizes four bank accounts in Spain for non-payment of renewable energy dues

It emerged this week that the British judicial system had authorized the seizure of four bank accounts belonging to the Cervantes Institute, the public institution in the Kingdom of Spain that promotes the teaching, learning and use of the Spanish language around the world. The accumulated balance in these accounts, in which the British judiciary intervened, amounts to 805,808 euros (699,057.49 British pounds).

This development is linked infrared case, Resulting in Spain’s defeat in a process carried out at the International Center for Settlement of Investment Disputes, an arbitration body linked to the World Bank. This litigation commenced in 2014 and concluded in August 2019, with the arbitration award confirmed in March 2021.

The initial complaint requested A Compensation amounting to 75.7 million eurosBut this amount decreased to 28.2 million euros after the final ruling presided over by Canadian Judge Stephen L. Drimmer. Due to the benefits of late payment and legal costs, the liabilities related to this case are gradually increasing. The interest added €4.8 million to the state’s debt, while legal costs increased liabilities by another €4.5 million.

The asset confiscation process related to the IR case began last April, with the precautionary seizure of two properties: the headquarters of the Cervantes Institute in London and the headquarters of ACCIÓ, Catalonia’s economic promotion body.

At the same time, those affected by the Spanish government’s non-payment activated a procedure known as TPDO (Third Party Debt Order), through which they requested the intervention of four bank accounts linked to the bank’s operations. Cervantes Institute in Great Britain.

A team of lawyers and consultants specializing in this type of action began their work in relation to the IR case in early 2023. Actions taken between April and November led to the seizure now announced. The decision has already been duly communicated to the Government of Spain.

The judicial decision was issued by High Court of Justice of England and Wales It bears the signature of Judge Richard Harold Davison. The case has been identified as CL-2023-000026. The judgment was issued on November 9 and was sealed and communicated to the parties on November 10. The attached documents include the ruling on the permissibility of seizure.

Spain’s reputation has been affected by the government’s decision not to adhere to its international obligations, leaving them in abeyance It ordered compensation in 25 cases Which ended in victories for the affected companies and investors, resulting in damage that is difficult to remedy.

In its latest report on the country, the US government highlighted the negative impact of these non-compliances, and the Chamber of Commerce in that country has filed a lawsuit seeking measures to put an end to the situation.

An additional ban is expected to be allowed in Australia, where the Supreme Court has also ruled against Spain and ordered the recognition of debts incurred by companies and investors who received compensation.

In light of these events, it is not surprising that the latest foreign investment figures, corresponding to the second quarter of 2023, show a decline of 74%. This decline is particularly evident with a decline of 97% in the case of the United States and 68% in the United Kingdom. In the cumulative amount for the first semester, the reduction is approximately 25%.