ECONOMY

Slovak bank sues Greece over 2012 bond swap

Slovak bank Postova Banka said it is suing Greece at an international arbitration tribunal over the forced exchange of the country’s bonds last year.

Postova said it and shareholder Istrokapital SE were suing Greece at the International Center for Settlement of Investment Disputes (ICSID) because it believed Greece broke international treaties in the bond swap.

“Greece adopted measures which broke international agreements. By doing that, it damaged the value of our investment. It is our duty to protect our investment and fight for our rights,” Chief Executive Marek Tarda said in a statement.

Part of the World Bank Group, the ICSID is a leading independent institution for the resolution of international investment disputes.

The bank said it believed Greek actions broke bilateral investment treaties between Slovakia and Greece and Cyprus and Greece.

Under the bond swap, investors took a 53.5 percent loss on their investments as part of Greece’s program to cut its debt. [Reuters]