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FIM Bank to pay indemnity to Azerbaijan

20 February 2010 10:42 (UTC +04:00)

The court passed the final decision on February 17, Amirov said.
The government of Azerbaijan is defended by Eversheds Faasen of the Netherlands. â€œThe company said on February 17 the court passed a decision in its final session not to prove lawsuit filed by FIM Bank and to oblige FIM Bank to pay 20 950 â‚¬ of indemnity to Azerbaijanâ€.
During more than four-year trial, four court decisions have been made in favor of Azerbaijan, lifting the arrest on Azerbaijanâ€™s 50,000 shares worth $400,000 in New Skies Satallites N.V and a $1.1 million stake in Bermuda-registered Intersat Ltd..

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 didnâ€™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.