Bonum Certa Men Certa

Saint-Germain's Poisonous Legacy of "Toxic Loans": The SIDRU “Toxic Loan” Débâcle a Case of “Take the Money and Run...”

Dette ToxiqueSummary: The fourth part of the series exploring the debt crisis at Battistelli's town (where he's deputy mayor) in light of the EPO's gambling with financial speculators, potentially adding to the many EPO scandals

The judgment of the Court of Appeal of Paris in the case of the DEPFA loan in November 2016 did not bring the saga of SIDRU and its "toxic loans" to a close.

A little over a year later in December 2017, the local newspaper La Gazette en Yvelines reported that Lamy’s successor as Chairman of SIDRU, Jean-Frédéric Berçot, had been replaced by Jean-Luc Gris, the Mayor of Gaillon-sur-Montcient and communal delegate for the urban agglomeration of Grand Paris Seine et Oise.

The article is titled Dette du Sidru : le président éjecté, les agglos devront payer [Translation: SIDRU’s debt – chairman dismissed, the urban agglomerations have to pay] and we have made local copies of the text [PDF] and the original [PDF] with a screenshot below (click to 'zoom').

Gazette-en-Yvelines-20-12-2017

After SIDRU had failed to raise a new loan to pay off the outstanding amounts due on the DEPFA loan, the liabilities were finally taken over by two urban agglomerations of Grand Paris Seine et Oise and Saint Germain Boucles de Seine.

La Gazette en Yvelines also reported that a second "toxic loan" which SIDRU had contracted with the bank Natixis was due to be the subject of a court judgment in 2018.

The expected liabilities for SIDRU in relation to the Natixis loan are estimated to be of the order of € 50 million.

Until all of the pending legal actions are concluded, it is difficult to put a final figure on the total financial fallout from the affair but it is likely to be of the order of at least € 70 million:

€ 20 million from the DEPFA loan and € 50 million from the Natixis loan.

For readers who are unfamiliar with local politics in France it may also be worth mentioning that the case of SIDRU is merely one example of a much more widespread problem which has caused a lot of controversy and unrest at the municipal political level throughout the country.

"During the period 2013-2014, it is estimated that the average rate of interest on these “toxic loans” was around 25%."Over the last decade and a half many communities have been devastated by the predatory financial practices of banks such as Dexia, Deutsche Bank, Calyon (Crédit Agricole), Depfa, Natixis, and Royal Bank of Scotland.

An article published in the French magazine Capital in December 2016 explained how these communities had permitted themselves to be trapped into "toxic loan” contracts with banks and included a map of France showing some of the most noteworthy examples of towns which were suffering under exorbitant interest rates. See “Emprunts toxiques : comment les villes se sont laissé piéger par les banques” [Translation: Toxic loans: how municipalities let themselves be trapped by the banks] with the image below.

France-toxic-loans

Similar to the loans which Lamy contracted on behalf of SIDRU, these "structured debt products" were long-term loan arrangements over periods ranging from ten to thirty years which offered an attractive fixed rate of interest for the first number of years, typically somewhere between 0% and 3% depending on the term of the loan.

But once the "honeymoon period" was over the debtors were thrown to the mercy of global financial markets.

During the period 2013-2014, it is estimated that the average rate of interest on these “toxic loans” was around 25%.

"According to Capital, the bankers involved in pushing these "structured debt products" referred to them internally under the code-name POTT ("Prends l'oseille et tire-toi!") which translates into English as "Take the money and run!""In a number of cases it rose above 50% and in one extreme example in the town of Angers it even reached 81%!

One specific example cited by Capital is the case of the town of Nîmes where an original loan for the amount of € 12.5 million resulted in estimated liabilities for the municipality of € 59 million!

According to Capital, the bankers involved in pushing these "structured debt products" referred to them internally under the code-name POTT ("Prends l'oseille et tire-toi!") which translates into English as "Take the money and run!"

toxic-loans

Recent Techrights' Posts

EU 'Chat Control' Law is Already Discrediting the Stated Goals of GDPR
Equip kids with always-on always-connected microphones and double-sided cameras, just to be safe...
Jean-Pierre Giraud, Possible Forgeries & Debian: elections, judgments, trademark already canceled, archaeologist
Reprinted with permission from Daniel Pocock
Justices Jeremy Johnson and Victoria Sharp to Decide the Fate of Julian Assange in About Three Weeks
Will he be back home in Australia by year's end?
Treating Them as Teammates, Not as Political Props, Trophies, or Objects
Most of the world's people are women
Belarus: Bing Fell From 1.1% to 0.6% Since Microsoft Started the LLM Hype (Yandex is 50 Times Bigger Than Bing)
Now enter Belarus
 
Morocco: GNU/Linux Surges From 0.1% to 4.21%
Microsoft has mass layoffs in Africa these days
[Meme] EU Chat Control II
Stuff like "Chat Control" means that GDPR will lose credibility and the true motives be rightly scrutinised/questioned
You're Only Proving Our Point, Sir
clearly obsessed with what we write
Just Because It Happened Over 20 Years Ago Doesn't Mean It's "Old News" or Stopped Happening
This strategy merely evolved
Thanking Solderpunk for 5 Years of Gemini Protocol
Long live Gemini Protocol and long live Solderpunk!
[Meme] He Who Controls the Boot
And licks the Microsoft boot
[Meme] systemd-recovery
Imagine "Linux" (Poetterix) becoming so unreliable that it needs factory resets
Almost Every Day This Month the GNU/Linux "Market Share" Grows in statCounter
Advocates like to see progress
Dawg, I Herd You Like Freedom
In the context of Software Freedom, little is ever said about free speech
Links 19/06/2024: Microsoft Faces Big Backlash, Bytedance Referred to US Department of Justice
Links for the day
Gemini Protocol Turns 5 in 15 Hours
Geminispace is still very much alive
OSI's Blog is Still 100% "AI" Nonsense Sponsored by Microsoft (the Authors Are Also Salaried by Microsoft)
The founder of the OSI no longer supports the OSI
Poland is Another Country Where Bing Lost a Lot of Market Share Since the LLM Gimmicks
down from 3.24% to 2.4%
It Took Microsoft More Than 3 Years to Get a Quarter of Windows Users to 'Upgrade' to Vista 11 (3 Out of 4 Windows Users Still Reject It)
That is exactly what's happening right now
[Meme] The Empire
Don't be like Putin
They Want 'Transparency' Only for the General Public (Every Bit of Communication Available to the Government, Usually Via Corporations)
The EU might decide to effectively ban SSH
Free Software Won't Fix Equality, But It Helps
Let's examine Free software in the context of: 1) money. 2) justice.
Links 19/06/2024: SFTP and Gopher Milestone
Links for the day
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Tuesday, June 18, 2024
IRC logs for Tuesday, June 18, 2024
US Surgeon General's Advice on Social Control Media (and "Smart" Phones) Seems Reasonable
People forget what the real world is about
Quiet at Planet Debian
planet.debian.org has not had any updates since 5 days ago
Morale at Microsoft Sinks to New Lows
The annual 'Employee Signals' survey showed a drop from 69% to 62% in positive responses
Microsoft Windows is Being Abandoned in the UK, Relative to Other Platforms (New All-Time Lows)
Windows at new lows
Links 18/06/2024: More Executives Leave Microsoft, Attacks on the Press in Russia and 'Exile'
Links for the day
[Meme] Always Livecasting
Wait Till Systemd-Recall
Australia: Bing Lost Market Share Since the LLM Hype ("Bing Chat")
Google rose, Bing went down
Gemini Links 18/06/2024: Unconscious Consumption and Firewall Autoban
Links for the day
[Meme] Canonical Has Basically Become Novell II
Today's Canonical...
While Everyone is Furious at Vista 11 (Over TPM, Recall and Other Malicious 'Features') Canonical is Selling It to People
So the only thing Canonical says about Windows is that you should give it a try?
Links 18/06/2024: Adobe and Internet Archive in Trouble
Links for the day
Peter Duffy Explains SystemD
Ein Volk, Ein Reich, Ein Führer!
[Meme] The Doyen and the Colonel
EPO continues to prioritise lawbreaking over knowledge
EPO Union Action: Next Week SUEPO The Hague and SUEPO Munich Talk About New Pension Scheme (NPS) and Salary Savings Plan (SSP)
So there are basically 32 days left for more people to intervene
[Meme] Wait Till Systemd-Recall
The only thing Linux still needs is a forensics backdoor
GNU/Linux Up This Month in India (or Why Famous Criminal Bill Gates Keeps Visiting Modi)
truth tends to catch up with people
Microsoft Poetterix is Work in Progress
Linux's New DRM Panic 'Blue Screen of Death' In Action
24/7 Work Discipline
it's not so much about how much (or how long) one works, it's about how one works and whether one feels comfortable doing it
Adamant Conformism is an Enemy of Science
"The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore, all progress depends on the unreasonable man"
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Monday, June 17, 2024
IRC logs for Monday, June 17, 2024
Links 18/06/2024: Further Mass Layoffs and Gemini Leftovers
Links for the day
At IBM, "Brownnosing is the Norm."
Many of these comments are from IBM insiders
Myanmar/Burma: Google Gains One Percent, Microsoft Loses One Percent Since the LLM Hype ('Bing Chat')
it's not hard to understand LLMs didn't replace real search and didn't replace Google, either
[Meme] KISS, not SAAS
Gemini Protocol turns 5 in exactly 2 days
Hostageware: The Threat of Clown Computing (or 'SaaS', Another Misnomer or Buzzword) to Computer Users Everywhere
This problem isn't limited to Free software adopters
Six on the Beach: After Losing Six Continents Microsoft is Losing Oceania Too
Based on the 6- or 7-continent view of the world
Links 17/06/2024: Mass Layoffs Accelerating in Tech, Concerns About Impact of the Net
Links for the day
Gemini Links 17/06/2024: Hyprland Analysed and No Use for Betrusted
Links for the day
Microsoft Can Never Make a Comeback Anymore, the Community is Shutting It Out
We're relying on the real community, not fake ones or coopted ones
The World is Becoming (or Has Already Become) Linux
An intercontinental success story
Georgia: Bing Share Fell by Half Since 'Bing Chat' (LLM Hype), Fell Behind Yandex As Well
Georgia's situation is interesting
[Meme] Community of People to be Exploited, Then Thrown Away, Left Behind or Even Slandered
Debian.org front page
Alexandre Oliva's FSF disposition
During my recent trip for LibrePlanet, I was fortunate to have, or at least start, long conversations with nearly everyone in FSF staff
[Meme] SPI and 'FSFE': Sponsored by Microsoft to...
women's instincts do not matter to these strongmen
One More (Failed) Attempt to Deplatform the Sites by Harassing and Threatening Webhosts
What we're seeing here is a person who abuses the system in Canada at Canadian taxpayers' expense trying to do the same in the UK, at British taxpayers' expense
[Meme] Shitburger of an LLM
IBM and the Hololens
Links 17/06/2024: Chatbot Nonsense Thrown Under the Bus (Severe Failure, Pure Hype), How to Finance Free Software 'Hackers'
Links for the day
Debian's Personal Attacks Are Upsetting Women, Too
Female Debian Developer: "I Believe Daniel [Pocock] is On the Right Track."
Microsoft's Bing is So Irrelevant in Moldova (1%) That Russia's Yandex is About 5 Times Bigger
How much longer before Microsoft throws in the towel?
12 Days Have Passed Since the Edward Brocklesby Revelations and Debian Project Has Said Absolutely Nothing About That
One must therefore assume they have nothing to say in their defence (covering up severe security failings)
Yes, You Can
Unless you live somewhere like Russia...
[Meme] Listen to the Experts
Bill Gates didn't even finish university]
Roy and Rianne's Righteously Royalty-free RSS Reader (R.R.R.R.R.R.) and the Front-End Interfaces
As the Web deteriorates the availability, quality and prevalence of RSS feeds is not improving, to put it mildly
Algeria Shows High GNU/Linux and Android Adoption, All-Time High and Almost Three-Quarters of Web Requests
GNU/Linux was below 3%, now it is above 3%
Mass Layoffs at Microsoft-owned GitHub (About 80 Percent of the Staff in India Laid Off)
It's not just in India
Over at Tux Machines...
GNU/Linux news for the past day
IRC Proceedings: Sunday, June 16, 2024
IRC logs for Sunday, June 16, 2024
Gemini Links 16/06/2024: Scarecrows, Moles, Ham Radio, and No IPs
Links for the day