WORLD CUP: STADIUM GIVES LAND AS COLLATERAL IN LOAN

The International  Club had to give part of the land of the Beira-Rio as collateral in loan operations BNDES (National Bank for Social Development) for its refurbishment. It is what is clear in the contracts signed by SPE (Special Purpose Company) Riverside with Banrisul Bank of Brazil banks and the development finance institution., according to UOL in Brazil.

The stadium’s reopening party was this weekend after a federal funding of £ 67,4 million to be included as host of games from the 2014 World Cup.

The stadium lit in red for the party

Beria Rio in festive mood, before the invoice arrives

 

 

In the three agreements between banks and the Beira-Rio SPE is written that one of the guarantees is “transfer to the BNDES, irrevocably and irreversibly, the real surface rights that will be built on the property subject to enrollment 6,258 (…) which will be installed the project.” There is a separate agreement establishing the alienation of this part of the stadium.

This means that if there is default on loan payments, banks may require part of the land of the Beira-Rio. And probably it also means more fuel for protests.

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