PrivatBank is released from any obligation to pay the principal amount of the loan or any additional interest payments.
PrivatBank announced the end of arbitration proceedings at the London Court of International Arbitration (LMAC) for the payment of four loans and interest on them for a total of $1 billion. This was reported by the press service of the state bank on Monday, September 19.
function news4500502() {
$.get(‘//’ + window.location.host + ‘/ajax/module.aspx?spm_id=444&id=4500502&lang=2&IsAjax=true’, function (data) { $(‘#nk4500502’).html(data); });
}
news4500502();
“PrivatBank is pleased to announce that on September 13, the arbitration proceedings were finally resolved in favor of the bank, all claims against the bank were completely rejected,” the message said.
The press service recalled that in December 2016, as part of the nationalization of PrivatBank, a bail-in procedure was conducted on four loans totaling $595 million provided by UK SPV Credit Finance Plc to PrivatBank. According to Ukrainian legislation, as a result of the bail-in procedure, all obligations of PrivatBank to UK SPV Credit Finance on four loans have been fully repaid.
In the arbitration, the plaintiffs (UK SPV Credit Finance together with Madison Pacific Trust) argued that the bail-in procedure did not operate in accordance with English law, and that the bank was still obliged to pay the principal and accrued interest in debt. agreements in full.
In May 2021, the Bank of England announced its decision to recognize the bail-in procedure carried out in Ukraine as substantially similar in purpose and expected result to the similar procedure in the United Kingdom, thereby paying all the obligations of PrivatBank under these loans on the date of the bail-in procedure (December 2016) in accordance with English law.
After that, the arbitration court issued final arbitration awards, which provided for the rejection of all claims against PrivatBank, and confirmation that PrivatBank is not obligated to pay the principal and interest to the claimants under loan agreements.
“PrivatBank was released from any obligation to pay principal or any additional interest payments on any of the four bail-in loans. Together, these amounts saved the bank more than $1 billion for to the benefit of Ukraine and its people,” the bank said in a statement.
Recall that at the end of July, the Supreme Court confirmed the legality of the nationalization of PrivatBank. This is the court’s final decision in the case, which is an important part of the legal struggle between the state bank and the former owners.
News from Correspondent.net on Telegram. Subscribe to our channel Athletistic
Source: korrespondent
I am Dylan Hudson, a dedicated and experienced journalist in the news industry. I have been working for Buna Times, as an author since 2018. My expertise lies in covering sports sections of the website and providing readers with reliable information on current sporting events.