The bank said that it filed a Notice of Arbitration on Thursday after the Argentine government failed to respond to three written requests during the past 18 months to negotiate an amicable settlement.
Scotiabank is now referring the dispute to arbitration under the terms of the Promotion and Protection of Investments Treaty signed by the Republic of Argentina and Canada in 1991. The arbitration panel will be comprised of one nominee from the bank, one from the Government of the Republic of Argentina, and a third person agreed to by both sides.
The Canadian bank said that the details of its grievance were not a matter for public record. However, it did comment that the Argentine actions violated the treaty protection against expropriation of investments without compensation. The bank also alleges that the authorities failed to give its subsidiary the same assistance as domestic banks and, in addition, they obstructed its attempts to restructure and reopen.
Scotiabank said it is seeking damages as compensation for the loss of its investment, the cost to it of winding-up Scotiabank Quilmes, and harm to its reputation.
