The economic situation and the effects of the world crisis on financial institutions have given rise to and fostered numerous initiatives of various natures and types in Spain.

One of the main objectives of the recent rules approved regarding the Spanish electricity sector is to achieve tariff sufficiency in order to solve some of the financial difficulties of electricity companies. In this respect, last April 30, several measures affecting the energy sector were adopted under Royal Decree 6/2009. Accordingly, current and further tariff deficits have to be financed, and the mechanism chosen to do so has been the securitisation of the collection rights in favour of a Spanish asset securitisation fund.

Soundly regulated and safe financial institutions are crucial for financial stability in the European Union (EU), and must have as their foundation a common framework ensuring prudential oversight and consumer protection throughout the internal market.

Following the international financial crisis and consequent breach of investors’ confidence and the increasing difficulties in liquidity raising by Portuguese credit institutions (CIs), particularly in the second half of 2008, the Portuguese State reacted with the enactment of new laws intended to increase investor confidence.

The Chapter 11 filing of Lehman Brothers has caused companies around the world to re-assess their exposure (particularly counterparty risk) to other potentially troubled financial institutions.

The Chapter 11 filing of Lehman Brothers has caused companies around the world to re-assess their exposure (particularly counterparty risk) to other potentially troubled financial institutions.

On 21 December 2007, Law 47/2007 amending the Spanish Securities Market Law (LMV) implementing the Directive on Markets in Financial Instruments 2004/39/EC (MiFID) came into force.

The activities of “angel investors” or “angels”, commonly referred to in Europe (where they have been recognised for some time) as “business angels”, were finally given their long awaited statutory recognition in Portugal by Decree-Law n.º 375/2007 of 8 November 2007.

How the Portuguese derivatives market will react to the new amendments introduced by the 2008 State Budget Law (Law 67- A/2007, of December 31) – the “Budget law” – is an issue that we believe will keep banks, Portuguese swap counterparties and lawyers busy for some time.

Decree-law 70/97 of April 3 (the Portuguese Netting Law) undoubtedly took the market by surprise. In 1997, when international banks were still trying to impose the ISDA documentation standard on locals (banks and institutional clients), Portugal became a netting jurisdiction. This was ahead of a number of more financially sophisticated jurisdictions, including our favourite neighbour Spain.