FIM Bank files appeal against decision on payment of indemnity to Azerbaijan

Azerbaijan’s Ministry of Communications and Information Technologies told APA-ECONOMICS that on February 17 Rotterdam Court rejected FIM Bank’s claim against the Azerbaijani government and passed a decision on the payment of ˆ 20.6 million indemnity by the bank to Azerbaijan. According to the court’s decision, the indemnity is to be transferred to the account of the Ministry’s Center for International Relations and Calculations. Azerbaijan was defended by Eversheds Faasen. FIM Bank had filed a lawsuit of $6.775 million against the Azerbaijani government.

The problem stemmed from the fact that several years ago Azerbaijan-based Pochtbank applied to FIM Bank for a loan to pay its debts. FIM Bank demanded official documents on the behalf of Azerbaijan. Pochtbank submitted counterfeit documents to get the loan. Although FIM Bank had found that the documents were fake, it lent the loan on the mutual consent.
The forged documents submitted to FIM Bank indicated that the loan would be used for procurement of equipment of alleged AzTell and BakTell owned by the Communications Ministry of Azerbaijan and the ministry allegedly provided guarantee for repayment (these companies didn’t exist in fact). Pochtbank failed to repay the loan which was borrowed through counterfeit documents.

Hoping to take the lost money from the Government of Azerbaijan, FIM Bank made lawsuits against the country in various countries. A decision was passed to arrest Azerbaijan’s 50,000 shares in New Skies Satallites N.V, 500,000 shares in France’s Eutelsat S.A. and stake in Bermuda-registered Intersat Ltd. In November, 2006, Paris Court of High Instance cancelled the decision of Paris Court passed on July 8, 2004 on the arrest of 500,000 shares of Azerbaijan’s Ministry of Communications and Information Technologies in the Eutelsat S.A.


/APA/