Eureko may claim massive sum in damages over PZU

Such an amount was unofficially confirmed by financial experts watching the developments of international arbitration proceedings, which is to now determine the value of compensation. The figure of zł.35 billion is shocking and comparable with annual expenditures on the National Health Fund (NFZ) and much higher than the budget deficit of zł.27 billion planned for 2008. Government representatives refuse any official talks on the eventual value of compensation due to confidentiality of arbitration proceedings. "I would be very careful in assessing the amount of compensation. Without access to evidence such estimates are irresponsible and unprofessional," said Grzegorz Domański, partner at Domański, Zakrzewski, Palinka law firm. The difference alone between the current value of shares and the value for which the Dutch investor was to purchase 21% stake in PZU amounts to almost zł.8 billion. "The most important and the most difficult to be assessed and usually causing most controversies is the part of compensation covering 'lost benefits'," said Grzegorz Domański. Kazimierz Marcinkiewicz, director at EBRD, is ready to become a negotiator over the issue and admitted hearing that Eureko might claim an amount over EUR 8 billion. (Rzeczpospolita, pp. B1, B3; 29-30 December) M.M.