Czechs hold talks with Nomura on IPB settlement

PRAGUE, Sept 18 (Reuters) - The Czech Republic has opened fresh negotiations with Japan's Nomura Holdings <8604.T> in a bid to end a lengthy compensation dispute over the collapse of Czech bank IPB in 2000, the Finance Ministry said on Monday.

IPB was co-owned by a special purpose vehicle set up by Nomura. After its collapse IPB was taken over by the state and sold to CSOB, a unit of Belgium's KBC <KBKBt.BR>, for 1 crown in a deal involving state guarantees.

The Czech government and Nomura have been locked in a lengthy legal battle over compensation since IPB's collapse.

The Czech Republic lost an international arbitration case with Nomura in March, and also an appeal against that decision filed with a Swiss court. Nomura is seeking 40 billion crowns ($1.78 billion) in that suit. No compensation has so far been awarded in that case.

The Czech Republic has launched a counter-suit against Nomura, demanding up to 111 billion crowns in a separate arbitration case.

"I hope we will turn around the developments in this years-long dispute," Finance Minister Vlastimil Tlusty said in a statement.

The talks also include CSOB and should produce a three-way agreement to end ongoing arbitration cases, the ministry said. ((Reporting by Jan Lopatka, editing by Paul Gallagher; prague.newsroom@reuters.com; Reuters Messaging: jan.lopatka.reuters.com@reuters.net; +420-224 190 474)) ($1=22.47 Czech Crown)

Keywords: FINANCIAL CZECH NOMURA