The decision in favor of the state of Montenegro is officially available

The Ministry of Finance announced that the decision of the International Center for the Settlement of Investment Disputes (ICSID) was published in favor of Montenegro, which was made in the proceedings of Adiko banka against Montenegro.

"Adiko Bank initiated arbitration proceedings against Montenegro in 2017, based on the Bilateral Investment Agreement between the Republic of Austria and the Former Republic of Yugoslavia (of which Montenegro is the successor), stating that the Law on the Conversion of Swiss Franc-denominated Loans into Euro Loans from 2015 (with amendments from August 2016), was a violation of international legal obligations by Montenegro. Montenegro adopted the Law on Conversion from 2015, as a solution to the great financial difficulties, in which the citizens found themselves of Montenegro, who were faced with sudden and unacceptable increases in loan repayments in Swiss francs, and after the sharp rise in the exchange rate of the Swiss franc against the euro in 2015. In any case, Adiko Bank's objection was that the Government and the borrowers should to assume part of the financial risk, which arises from currency fluctuations, and that the law unfairly "rushed" through the parliamentary procedure, without due consideration," the Ministry of Finance said in a statement.

The department recalled that the procedure began in September 2017 and consisted of two rounds of written submissions and hearings in Paris in December 2019, after which the tribunal issued a decision in November 2021, rejecting all claims against the state and ordering Adiko Bank to pay most of Montenegro's expenses.

"The Tribunal assessed that the Law on Conversion was a reasonable and proportionate response of the Montenegrin state, with the aim of alleviating the financial difficulties suffered by borrowers of loans in Swiss francs. The decision represents a complete justification of the actions of the Parliament and the Government of Montenegro in the crisis of "loans in Swiss francs". The "Swiss Franc Credit Crisis" has prompted legal proceedings before domestic and international courts and tribunals across the Southern and Eastern European region, including ICSID arbitrations against Montenegro, Croatia and Slovenia. The case against Montenegro is the first ICSID arbitration to reached a conclusion and decided on the degree of respect given to states in terms of international law, in response to financial crisis situations.Montenegro was represented by members of the Ministry of Finance, the Central Bank, the Ministry of Justice and an international legal team led by Cherie Blair CBE KC and Catriona Paterson from Omnia Strategy LLP. The Ministry of Finance would like to thank all the participants in this process for their dedication in representing Montenegro in this important case," the announcement states.

On the website of the Ministry of Finance, a link is available where you can find the decision, which, as stated in the announcement, has been redacted in order to preserve the applicant's confidential information.