Foreign Agrobanka shareholders announce arbitrage

A fifth of Agrobanka bank shareholders announced on Monday the possibility of launching international arbitrage proceedings. The shareholders in question are foreign investors with main offices in EU countries. Foreign Agrobanka shareholders announce arbitrage They warned of the move unless the situation related to the bank, whose work license was revoked in May, had been resolved by mutual consent. Foreign investors are in situation to consider the arbitrage option because the activities of the state that occurred prior to the bank’s bankruptcy, which the shareholders consider as evidence for their thesis that “the entire process Serbia has carried out is unlawful - even illogical - and these indicate that there was a plan for expropriation of the shareholders’ rights by the majority shareholders, ruination of the bank and violation of international agreements in a rather tough way.” The statement of the shareholders with the capacity of foreign investors in Agrobanka reads that they have not received an answer from the National Bank of Serbia (NBS) to a request sent almost three weeks ago to the central bank to reconsider the decision to revoke the work license to the bank. The central bank revoked Agrobanka's license because even after the bank had been placed into receivership in late 2011 it did not manage to consolidate the business operations. Overall losses of Agrobanka are estimated at around EUR 290 million. VIP

Foreign Agrobanka shareholders announce arbitrage

They warned of the move unless the situation related to the bank, whose work license was revoked in May, had been resolved by mutual consent.

Foreign investors are in situation to consider the arbitrage option because the activities of the state that occurred prior to the bank’s bankruptcy, which the shareholders consider as evidence for their thesis that “the entire process Serbia has carried out is unlawful - even illogical - and these indicate that there was a plan for expropriation of the shareholders’ rights by the majority shareholders, ruination of the bank and violation of international agreements in a rather tough way.”

The statement of the shareholders with the capacity of foreign investors in Agrobanka reads that they have not received an answer from the National Bank of Serbia (NBS) to a request sent almost three weeks ago to the central bank to reconsider the decision to revoke the work license to the bank.

The central bank revoked Agrobanka's license because even after the bank had been placed into receivership in late 2011 it did not manage to consolidate the business operations.

Overall losses of Agrobanka are estimated at around EUR 290 million.