Dutch-based Firm to Sue Montenegro Bank

Podgorica | 09 December 2008 | Dutch-based MNSS B.V, the majority stakeholder in Montenegro’s sole steel plant, says it will launch legal proceedings against one of the country’s largest banks for delays in processing payment.

Prva Banka is owned by Prime Minister Milo Djukanovic’s brother Aco.

MNSS said in a statement it will order the transfer of cash deposits in Prva Banka totalling €26.5 million to Dutch-based Fortis Bank because Prva Banka failed to execute its payment orders.

Prva Banka last Friday failed to pay €1.8 million to Niksic Steelworks’ key supplier, MNSS said in a statement.

‘In certain instances, MNSS, Steelworks and its suppliers have been provided with misleading and possibly fraudulent documents purporting to show that instructions for fund transfers have been made but the payments have never materialised,’ the statement said.

The company also quoted Steelworks’ spokesman Mark Jacobson as saying that Prva Banka actions ‘were intolerable’.

‘As a consequence, we are taking legal action against Prva Banka and are suing Prva Banka for damages, which already amount to many millions of euros,’ he said.

A spokesperson for Prva Bank, contacted by the Reuters news agency, said the bank had not seen the MNSS statement and could not comment on it.

Prva Banka emerged as one of the leading financial institutions in the Adriatic state after 2006 when Aco Djukanovic bought shares and changed its name from Nicksicka Banka.
Contributed by Balkaninsight

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Posted by Gjergj Erebara on Dec 12 2008. Filed under Banking & Finance, Business, Economy, Region. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry