By Damon Vis-Dunbar
30 March 2009
The American finance company CIT Group has reached a settlement with Argentina, bringing to close arbitration proceedings which began in 2003.
CIT Group had been seeking some US$124 million for alleged violations of the US-Argentina bilateral investment treaty, in one of the many disputes that arose with foreign investors in the wake of Argentina’s 2001-2002 economic crisis.
In a 20 March 2009 letter to the tribunal, counsel for CIT Group announced that it had reached an agreement with Argentina, and requested discontinuance of the arbitration proceedings. Argentina concurred with the request, and accepted to split the cost of the arbitration with CIT Group.
Requests byto CIT Group for further information about the settlement were not returned.
Of the cases at ICSID launched by foreign investors against Argentina, eight have so far been discontinued after a settlement was reached. A number of others have been suspended on the request of the disputing parties.