UBS said to sue Croatia

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UBS sued Croatia in New York federal court on Friday, claiming the republic owes it $45m in principal and interest on defaulted debt assumed after the breakup of Yugoslavia.

Reuters reports that according to the lawsuit, Yugoslavia issued the debt in 1988 as part of a series of restructurings, as the country tried to keep its struggling economy afloat. It said the terms of the notes in question call for any legal action to be filed in New York.

Yugoslavia broke up in the early 1990s amid years of civil war. In 2001, the country's remaining external debt was divvied up among Croatia and the other successor states to Yugoslavia: Bosnia and Herzegovina, Macedonia, Slovenia, Montenegro and Serbia, according to the lawsuit.

The other countries fulfilled their debt obligations to UBS, the lawsuit said, leaving only Croatia in default.

Hit the link below to access the complete Reuters article:

UBS sues Croatia in U.S. over $45 mln in Yugoslavia-era debt

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