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THE INTERNATIONAL CENTRE FOR SETTLEMENT OF INVESTMENT DISPUTES (ICSID) DISMISSED
THE CLAIM AGAINST VENEZUELA.
On December 28th 2007, the Bolivarian Republic of Venezuela obtained the dismissal of a claim brought by the Dutch company I & I Beheer B.V. in an International Tribunal before the International Centre for Settlement of Investment Disputes (ICSID), an arm of the World Bank.
The Dutch company brought its claim complaining that Venezuela had refused to pay out on two promissory notes worth $5 million each, which had been allegedly issued by BANDAGRO, a Venezuelan state-owned agricultural bank. The Dutch company claimed US $324 million in damages allegedly reflecting the value of the notes plus interests.
In the last year of the arbitration process, Venezuela’s defence was led by the Federal Attorney General which pointed out the forgery of the supposed promissory notes, the fraudulent conduct of claimants and the inadequacies of the legal procedure.
This victory is very important to the Bolivarian Republic of Venezuela because it represents the first favourable legal process related to the supposed promissory notes of BANDAGRO in an International Jurisdiction, and it is also the first ICSID adjudication granted to Venezuela.
The Venezuelan Federal Attorney General will continue to participate in other related court actions, with the aim of protecting Venezuela’s patrimony while taking further steps to confiscate fraudulent titles and pursuing criminal charges against its holders.
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