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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.

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