BTA Bank to Regain Control over its Branch in Kyrgyzstan
Saturday 20 October 2012
ALMATY (BTA press service) – BTA Bank JSC informs that on October 12, 2012 the Interdistrict court of Bishkek granted Bank’s claim on annulment of bids resulted in sale of 71% of shares in BTA Bank CJSC (Kyrgyz Republic) owned by the Kazakh BTA Bank.
After long court procedures, the court ordered to transfer shares into BTA Bank’s ownership. The annulled bids which resulted in loss of 35.5 million shares of the Bank’s subsidiary in Kyrgyzstan were held in 2009. As BTA Bank reported, the bids were held under illegal decision which was preceded by a planned raid on the Bank. Measures taken by the Bank to appeal the judicial acts and actions of the court enforcement officer had no effect during that period due to the pressure by raid organizers.
The fact that BTA Bank suffered raid is in particular evidenced by the order under the criminal case on illegal acquisition of 71% of shares in BTA Bank CJSC made by the Kyrgyz court in May, 2012. The issue on restoration of the Bank’s rights was continuously raised during different meetings with the top officials of both countries and the order confirms intention of Kyrgyzstan to follow legal principles of conflict resolution.
Order made by the Interdistrict court of Bishkek in favour of the Bank evidences performance by the Kyrgyz Republic liabilities assumed by it after entering into a number of agreements on investment protection. This gives promise that the Bank’s investment rights will be fully recovered in Kyrgyzstan in the nearest future.
“Decision of Bishkek inter-district court in favour of the bank demonstrates Kyrgyzstan’s fulfilment of obligations, undertaken by the republic with signing of several agreements on investments protection. It gives reasons to hope for a speedy and full restoration of investment rights of the bank in Kyrgyzstan,” the Kazakh investors said.
“We welcome the verdict of Bishkek court and fair impartial review of our claim. As working here foreign investor, we are satisfied that our legal rights and interests were properly protected in Kyrgyzstan,” Anvar Saidenov, Chairman of Directors’ Board of BTA Bank-Kazakhstan, said.