The Zurich arbitration in which the Czech Republic is suing the Japanese Nomura for CZK111 billion (€3.9 billion) in compensation for costs related to forced administration in the collapsed IPB bank has begun, the finance ministry announced. The state originally demanded CZK260 billion from Nomura, and the National Property Fund, which ceased to exist in 2005 and whose claims, a further CZK3 billion, were taken over by the state.
 
According to the finance ministry, the original figures were based on maximum amounts of public support to CSOB related to its takeover of IPB, but final calculations have set the sum at CZK111 billion. However, the London arbitration verdict, in which the Czech Republic lost against Nomura, which held 46.16% in IPB through its affiliate, Dutch company Saluka Investments, is reportedly expected to have a negative influence over the Zurich arbitration. ISI recalls that the negative London verdict was substantiated by failure to protect investment in IPB bank, as well as for being discriminated against since, unlike other large Czech banks, the government did not provide any aid to prevent its collapse. 

The London arbitration is expected to decide on a financial compensation in the second stage of the proceedings. Still, the finance ministry is convinced that as long as the London verdict has been based on international laws, it will not have immediate effect on the Zurich arbitration, which is based on Czech law.