Seven-billion-crown victory for Czech Republic in Union Banka arbitration case

The Czech Republic has won an international arbitration against the Italian-Dutch firm Invesmart over the bankrupt financial institution Union Banka. Invesmart, which owned the bank, filed a seven-billion-crown (380 million USD) lawsuit against the Czech Republic for obstructing the company’s investment in Union Banka, which it says did not receive the public support that other competing banks were given. The international court of arbitration in London however found no breach of international law or obligations on the part of the Czech Republic. Union Banka was declared bankrupt in 2003. The bank had 200 thousand clients and 17 billion in deposits at the time of its closure.