A controlling stake in the bank was recently acquired by financial group J&T from Istrokapital. Istrokapital, based in Cyprus, is owned by Slovak financier Mario Hoffmann

Postova Banka Files Lawsuit Against Greece

Slovak bank Postova banka and its shareholder, the company Istrokapital, have launched arbitration against Greece at the International Centre for Settlement of Investment Disputes (ICSID) over last year’s swap of Greek bonds for new ones with a much lower value, Slovak media reported this week.

Greek Parliament - not a happy place (c) Tibor Macak, The Daily.sk

Postova banka posted a big loss during this transaction which was a part of international financial aid to debt-ridden Greece. ”Greece adopted measures that breached international agreements. We lost the value of our investment as a result of these steps,” Slovak media quoted Postova banka head Marek Tarda as saying.

A controlling stake in the bank was recently acquired by financial group J&T from Istrokapital. Istrokapital, based in Cyprus, is owned by Slovak financier Mario Hoffmann. Postova banka and Istrokapital say Greece changed conditions of issued government bonds one-sidedly and retroactively. In doing so, it allegedly violated investment agreements which it signed with Slovakia and Cyprus.

Postova banka owned Greek bonds worth a nominal EUR500m (about Kc12.9bn) in 2011. The bank lost KEUR275m owing to the write-off of these securities. The result was a loss exceeding EUR217m which the bank reported for the year 2011. In 2012, the bank made a net profit of EUR67.46m.
Postova banka is the sixth biggest bank on the Slovak market by the value of total assets. It operates 41 outlets and offers its services also at more than 1,500 post offices throughout Slovakia. Source: CTK

Read more: Postova Banka Files Lawsuit Against Greece | The Daily Slovakia http://www.thedaily.sk/postova-banka-files-lawsuit-against-greece/#ixzz2SpDsHSh6