SCJ final decision in favor of “Microinvest”

07052015

Justice triumphed in the case of “Microinvest”, one of the biggest microfinance company in Moldova. On April 29, the Supreme Court of Justice gave prevail to “Microinvest” into the forced execution of investment contracts concluded between the company and its shareholders.

The extended Board on civil, commercial and administrative cases of the Supreme Court has recognized illegal the decisions of the lower courts, because they were taken with the interpretation and misapplication of the rules of substantive and procedural law. The Supreme Court decision is final and is not appealable.

The Associates of “Microinvest” – “BFSE HOLDING BV” (Netherlands), among whose principal investors are the development agencies of the Governments of Switzerland and Germany, “Oikocredit” Ecumenical Development Cooperative Society UA (Netherlands), Soros Economic Development Fund (USA) and SA SIDI SOLIDARITE INTERNATIONALE POUR LE DEVELOPPEMENT ET L’INVESTISSEMENT (France) – believe that the Supreme Court judged the case correctly, in accordance with the international law in force, in compliance with the arbitration clause.

Clive Moody, the representative of the shareholders of “Microinvest”:
“The decision of the Supreme Court is a signal to us, investors, that Moldovan courts respect the contracts that we sign, the jurisdiction to settle disputes under these contracts and the law we choose to govern their execution. Foreign investors rely on commercial contracts governed by international law, which ensures clarity and predictability – key issues in attracting foreign investments in Moldova. Therefore, our case will serve as an important precedent and will have impact in the attractiveness of Moldova for foreign investors. This decision motivates us to continue investments in Moldova, to develop the company, financing more businesses and creating new jobs. ”

We would like to remind you that in this process, by decision of December 18th 2014, the judges of the Court of Appeal have attributed the jurisdiction to hear an investment dispute, ignoring the arbitration clause and English law, chosen by all parties as the law applicable to contracts in question. By adopting that decision, given the fact that 81.58% of the share capital of the company “Microinvest” consists of foreign investment, has been severely violated international arbitration clause and international conventions signed by Moldova. And Moldova, which is subject to international laws, must respect property rights of foreign investors and to ensure the protection of foreign investments in the country.

About “Microinvest”
“Microinvest” is a microfinance company, which operates in banking and financial market of Moldova since April 2013. The company’s mission is to provide competitive financial solutions to local small businesses and individuals to develop entrepreneurship in Moldova and to contribute to the growth of the socio-economic potential of the country and raise the living standards of citizens. Currently “Microinvest” has a network of 14 branches and 1 agency, covering most districts of the Republic of Moldova, where 117 employees work.

During its activity “Microinvest” has financed 32,729 businesses and individuals, providing loans worth 1.58 billion lei and helped create over 3,000 jobs. On December 31st 2014 “Microinvest” had 8,100 active loans and a portfolio of 235,7 million lei.

More information about the company “Microinvest” can be found on the website: www.microinvest.md.

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