Argentina Says Bank of Nova Scotia Drops $600 Million Claim in Lawsuit

Argentina’s central bank said the Bank of Nova Scotia (BNS) dropped legal actions against the country under which it sought $600 million.

Bank of Nova Scotia filed a claim in 2005 for damages to recoup its investment in Scotiabank Quilmes SA, the Argentine unit that closed in 2002 following Argentina’s default on $95 billion in debt. Scotia Quilmes also ended legal action, the central bank said today in an e-mailed statement.

The banks “desisted of all arbitral and judicial processes against the state and the Banco Central de la Republica Argentina,” according to the statement.

Bank of Nova Scotia spokeswoman Robin Harper didn’t immediately respond to a telephone message seeking comment.

The banks claims are in connection with actions taken by Argentina in 2001 and 2002, the press release said.

Argentina defaulted on a record $95 billion of bonds in 2001 and began restructuring the debt in 2005. Creditors holding securities with a face value of $74.5 billion have accepted the deals, according to a filing last year with the U.S. Securities and Exchange Commission.

To contact the reporters on this story: Richard Jarvie in Buenos Aires at rjarvie@bloomberg.net; Camila Russo in Buenos Aires at crusso15@bloomberg.net

To contact the editor responsible for this story: Richard Jarvie at rjarvie@bloomberg.net

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