Czech Republic ordered to pay Nomura 3, 6 billion crowns

A London court of arbitration has ordered the Czech Republic to pay the Japanese investment group Nomura 3.6 billion crowns in compensation for breaching its obligations to a foreign investor. The dispute concerns the fall of IPB bank in June of 2000 in which Nomura had a 46 % stake. Following a programme of state aid to IPB’s competitors, the Czech Republic placed IPB into forced administration and transferred its business to rival Československá Obchodní banka for the symbolic price of one Czech crown. Nomura filed a lawsuit and won its case last year. It was not clear until now how much the Czech Republic would have to pay for breaching its obligations to the Japanese investor. In 2006 the Czech state and Nomura negotiated a settlement, the conditions of which are being kept secret.