Czech Prime Minister Jiri Paroubek and Finance Minister Bohumil Sobotka
are in disagreement over how to proceed with a controversial arbitration
case that could cost the state 40 billion crowns (over 1.5 billion US
dollars). A London court is currently handling a complaint against the
Czech Republic filed by the Japanese investment bank, Nomura. Nomura
claims that the Czech government failed to protect its investment when it
ordered the enforced administration of the ailing IPB bank, in which
Nomura had shares, and its subsequent sale to a rival Czech banking
institution, CSOB five years ago. Nomura is demanding 40 billion Czech
crowns in compensation.
From information received by the Czech intelligence services, Prime
Minister Paroubek fears the state could lose the case and would like it to
try to come to an agreement with Nomura. Mr Sobotka believes that any such
agreement would violate state guarantees promised to CSOB in 2000.