Nepal Investment Bank Receives Full Amount of Bank Guarantee From Italian Bank
June 18, 2020 | Investopaper
Nepal Investment Bank (NIBL) has received the full amount of the bank guarantee amounting to Euro 8.75 million and NPR 850.00 million totaling to NPR 2.0 billion from the Italian bank – Intesa Sanpaolo SPA. The payment was received after the ruling by a three judge bench of Italian court, Tribunale Di Bologna on June 9, 2020 revoking its previous decree issued by a one judge bench which had prevented Intesa to pay the amount to NIBL.
This episode is a positive development in the arena of Nepalese and international banking practices, reinforcing the trust on banking instruments like Bank Guarantees whereby such a sizable fund could be recuperated back to the country. This is one of the first instance for a bank to have successfully recovered the Bank Guarantee amount in Nepalese banking history till date after successfully challenging the interim order issued at first stage of hearing in International Court.
NIBL has thanked the officials from Ministry of Finance, Ministry of Energy, Ministry of Foreign Affairs, Nepal Rastra Bank, Nepal Electricity Authority, Tanahu Hydro Power Pvt. Ltd and the well-wishers for their continuous support.
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