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Official Statement by JSC Terabank

On March 27 the round table meeting organized by International Chamber of Commerce (ICC) discussed several important court trials, including JSC Terabank dispute against the former owner of property taken over by the bank.

Objective of the discussions was to outline how court decisions on separate cases affect the investment climate  and reputation of Georgia.

Brief history around the mentioned case is the following:

In 2015 the Bank took over the mortgaged property that the former voluntarily owner transmitted to the bank under the applicable legislation to cover the financial liabilities. The bank planned to sell the property, but the client applied to the court for banning sales of the property.

Under the court decision, restriction measures were imposed on the mentioned assets  and the bank was banned to sell the property. This provisional remedy is in force for about a year, but essential discussions of the case has not started yet. As a result, the bank cannot sell the property and bears considerable financial losses every day. For compensation of these losses, the bank applied to the court many times and requested remuneration of losses by the plaintiff, but the court did not satisfy our requests.

The bank offered our client several times to buy off the property, but similar scenario  does not meet the interests of the plaintiff and he tries to maximally win time.

Terabank is owned by Arab Investment Group and Sheikh Nahyan Mabarak Al Nahyan is one of the founders, who has already invested more than 250 million USD in Georgia. Besides the bank, it owns Biltmore hotel and plans to grow investments in various directions. However, naturally, the investor’s decisions depend on how efficiently their legal interests will be defended in the court system.

We hope the court will promote to finish the trial as soon as possible and investment inflows will further grow in Georgia.