Dispute between Kyrgyz government and BTA Bank settled
The arbitration dispute between Kyrgyzstan and BTA Bank was settled amicably. The press service of the Cabinet of Ministers reported with reference to the Center of Legal Representation.
Recall, in 2011, BTA Bank initiated an international investment arbitration in the Hague against Kyrgyzstan on the alleged illegal actions by the government and other persons. The bank’s owners considered expropriation of 71 percent of the plaintiff’s shares in a subsidiary of BTA Bank in Kyrgyzstan illegal. This, according to BTA Bank, violated the agreement between the governments of Kyrgyzstan and Kazakhstan on mutual protection of investments. The amount of the claim was $ 75 million.
«According to the settlement agreement, the dispute was settled, arbitration proceedings were terminated without recognition of any responsibility on the part of Kyrgyzstan and payment of any compensation. BTA Bank pledged to purchase at the market price 7.7 percent of shares of its subsidiary bank from the State Property Management Fund,» the government stressed.
