HANSAPANK

ANNOUNCEMENT

20.09.99

 

 

HANSABANK WILL RECALL A LOAN GIVEN TO THE CITY OF DNEPROPETROVSK

 

Hansabank has decided to start legal proceedings to accelerate the 

maturity of a USD 5 million loan given by the former Estonian Savings 

Bank to the city of Dnepropetrovsk.

 

Hansabank and the city of Dnepropetrovsk have conducted several rounds 

of negotiations with the goal to continue servicing the loan given to 

the city. However these negotiations have ended without a positive result 

and the client has failed to meet its contractual obligations. Therefore

Hansabank has decided to accelerate the maturity of the contract and to 

recall the loan.

 

In December 1997, the former Estonian Savings Bank and the city of 

Dnepropetrovsk signed a loan agreement for granting the city a loan worth 

USD 5 million. In April 1999 the bank fully provisioned the loan due to 

servicing problems and wrote it off.

 

Hansabank intends to submit a request for arbitration to the Arbitration 

Institute of the Stockholm Chamber of Commerce in order to resolve the dispute 

regarding the loan agreement between Hansabank and the city of Dnepropetrovsk.

 

 

Additional information:

Aivar Rehe

Chief Credit Officer

+372 613 1221

 

 

HANSABANK

 

 

 

Mart Toevere

Analyst

Tel. +372 6131 569