Question
Sociedade de Construes, PLC., for the development of a residential building in Campo Grande, borrowed EUR 5,000,000.00 with a variable interest rate corresponding to the
Sociedade de Construes, PLC., for the development of a residential building in Campo Grande, borrowed EUR 5,000,000.00 with a variable interest rate corresponding to the 12-month Euribor plus 2%. In turn, Sociedade Hoteleira, PLC., for the construction of a hotel in Chiado, borrowed EUR 5,000,000.00 with a fixed interest rate of 5%. While Antnio, Sole Director of the Company Construes, PLC., fears an escalation in Euribor, Bernardo, Sole Administrator of Sociedade Hoteleira, PLC., thinks that Euribor will remain low and, therefore, would prefer a variable rate financing.
Can each of the two companies benefit from the interest rate of the other company, and if so, can such contract be celebrated with the bank that gave them the financing?
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