KATHMANDU, JUNE 18

Nepal Investment Bank Ltd (NIBL) has received the full amount of the bank guarantee amounting to 8.75 million euros and Rs 850 million totalling Rs two 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, 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 Nepali and international banking practices, reinforcing the trust on banking instruments like bank guarantees whereby such a sizeable fund could be recuperated back to the country,” as per a media release.

This is one of the first instances for a bank to have successfully recovered the bank guarantee amount in Nepal’s banking history till date after successfully challenging the interim order issued at first stage of hearing in international court, the release adds.

A version of this article appears in e-paper on June 19, 2020, of The Himalayan Times.

READ ALSO:

• NIBL wins legal battle against Italian firm