Spectator on facebook

Spectator on facebook

Malchárek acts against ČSOB court verdict

LIBERAL ANO (New Citizen's Alliance) party Deputy Chairman Jirko Malchárek is taking action against the ČSOB arbitration court verdict made in Washington.

Malchárek has filed a motion against an unknown offender in connection with the verdict that ordered Slovakia to pay Sk24.7 billion (€636.6 million) to a Czech subsidiary of the KBC bank, in a loan dispute dating back to the break up of Czechoslovakia, according to the TASR news agency.

If Slovakia doesn't appeal the court decision involving KBC's subsidiary ČSOB, it will have to pay the Sk24.7 billion to ČSOB this year, Malchárek noted.

The country has been ordered to pay the Sk24.7 billion (€636.6 million) to ČSOB by the International Centre for Settlement of Investment Disputes (ICSID, an international arbitration tribunal), by January 28.

The entire dispute originates from the ČSOB revitalization scheme in 1993 for Slovenská Inkasná (SI) and Czech Inkasná (CI) banks - state banks formed by the Czech and Slovak finance ministries as part of the wind-down of mutual affairs between the former federation partners. SI and CI assumed ČSOB's receivables and took out a loan from ČSOB.

In April 1997, ČSOB petitioned the ICSID for repayment of Sk13.7 billion (€350 million). After seven years the arbitration court ordered Slovakia pay the bank Sk24.7 billion, as well as its original demand of Sk13.7 billion and interest of Sk11.618 billion (€300 million). In addition, Slovakia must pay $10 million (€7.54 million) in court costs.

ČSOB's total demand was Sk47.2 billion (€1.22 billion). ICSID refused other ČSOB demands, including foregone profit, interest capitalization and contractual fines.

Compiled by Marta Ďurianová from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

Top stories

Socialism elections were parody of free vote

After the revolution in 1989 the number of people participating in elections fell from 99 percent to around 60 percent.

Elections during socialism regime.

Foreigners: Top 10 events in Bratislava Video

Tips for the top 10 events in the capital between November 17 and November 26, plus regular services in different languages, training, temporary exhibitions and highlights of the year.

Lúčnica

Top 3 stories from Last Week in Slovakia Video

Chinese could produce e-cars in Slovakia - PM Robert Fico does not see election defeat - Poliačik leaves the strongest opposition party

PM Robert Fico

Ecocide! How Slovakia destroys its national parks

Officially, the number of forests in Slovakia keeps growing but satellite shots of the national parks evoke horrors.

logging at Muránska Planina