Financial stability

Investor-state dispute settlement (ISDS) is one of the greatest threats to the re-regulation of finance. ISDS empowers the very firms that financial regulation seeks to govern. These firms can bypass host country domestic courts and directly challenge domestic policies in a parallel system of justice.

Financial and non-financial firms have increasingly used ISDS provisions in trade agreements to challenge financial regulations and emergency financial stability measures.

Most well-known cases include:

• Investors vs. Argentina: When the country froze its utility rates and devaluated its currency in response to its 2001-2002 financial crisis, it was hit by over 40 lawsuits from investors, including Suez, Vivendi (France) and Anglian Water (UK). By January 2014, Argentina had been ordered to pay a total of US$980 million (various BITs invoked).

• Poštová Banka (Slovakia) & Istrokapital (Cyprus) vs. Greece: the Slovak bank and its Cypriot investor sued Greece on account of the restructuring of the country’s sovereign debt, after having bought Greek government bonds at a knockdown value. The investors lost the case. (Greece-Slovakia & Cyprus-Greece BITs invoked).

• Saluka (Netherlands) vs. Czech Republic: the Dutch investment corporation filed an ISDS dispute against the Czech government for not bailing out a private bank, in which the company had a stake, in the same way that the government bailed out banks in which the government had a major stake. The bailouts came in response to a widespread bank debt crisis. The investor was awarded US$236 million (Czech Republic-Netherlands BIT invoked).

(March 2020)

The Indian Express | 8-Nov-2016
Global MNCs like Cairn Energy and Vodafone have invoked Bilateral Investment Treaty and served arbitration notice to India over tax disputes. While the tax demand on Cairn Energy is Rs 10,247 crore, that on Vodafone is Rs 14,200 crore.
African Manager | 8-Nov-2016
Le différend Tunisie-Lundin s’oriente à pas sûr vers la résolution. Les termes d’un accord à l’amiable ne sont pas encore connus, car n’étant pas encore officiels.
CDM | 7-Nov-2016
Addiko Bank AG repeated its concern regarding the Proposal of the Amendment law for conversion of loans in Swiss francs to euros.
Reuters | 7-Nov-2016
The Croatian government is facing a lawsuit for forcing local banks to convert Swiss franc loans into euros.
The Jordan Times | 4-Nov-2016
The Telecommunications Regulatory Commission (TRC) signed a settlement agreement with Orange Jordan, ending a dispute related to the renewal of the company’s second-generation (2G) network.
Espace Manager | 1-Nov-2016
Le groupe pétrolier suédois, Lundin, a fait condamner la Tunisie à lui verser 20 millions d’euros de dédommagement devant le tribunal arbitral Cirdi, mais ne parvient pas à en obtenir le règlement.
Calvin Ayre | 5-Oct-2016
The Appeal Court in Singapore ruled that Sanum has the right to seek redress under the China-Laos BIT for capital investment benefit losses.
Le360 | 3-Oct-2016
Dans l’affaire de la Banque franco-tunisienne, nationalisée en 1989, l’ex-propriétaire, ABCI, réclame la restitution de sa banque devant le CIRDI.
Jeune Afrique | 12-Sep-2016
Selon des sources financières, le FMI a demandé à l’État tunisien de préparer une provision de 400 millions de dinars au titre d’une première tranche d’indemnités que celui-ci pourrait être amené à verser à ABCI Investments.
BuzzFeed | 1-Sep-2016
Financial companies have figured out how to turn a controversial global legal system to their own very profitable advantage.

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