Bank of Valletta has settled a long-standing dispute with the Swedish Pension Agency for €26.5 million, it said on Wednesday.
In a company announcement, the bank said the agency, as the sole investor in the Falcon Fund SICAV, had claimed damages exceeding €71 million.
BOV said it has settled the claim for €26.5 million.
The settlement arrangements will not result in the bank incurring a loss in excess of that already provided for, with some release back to profit and loss expected in due course.
The bank’s total provisions for all contingent liabilities will also be reduced significantly once the transaction is completed.
The pension agency’s dispute with BOV related to a private pension offered to Swedish savers which ended up losing 80 million of people’s money due to bad investments.
The Swedish Pensions Agency held BOV responsible for those losses.
BOV had set aside €75 million in 2018 to cover litigation costs related to this case and two other disputes it faced.