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Julius Baer wins second appeal in GDR repayment case

Julius Baer wins second appeal in GDR repayment case

Julius Baer has won its second appeal against the Bundesanstalt für vereinigungsbedingte Sonderaufgaben (BvS) in a fight over the repayment of a hidden fortune from the former German Democratic Republic (GDR).

According to a press release about the case, the BvS – the German federal body that was responsible for privatising the GDR's state-owned industries – has claimed that Bank Cantrade concealed approximately CHF 97 million of GDR funds in the early 1990s.

Bank Cantrade was acquired by Julius Baer in 2005, and the BvS believes Julius Baer is now responsible for paying back those funds.  

The money had existed as assets in GDR-based import and export firm Novum, which was solely owned by Austrian communist Rudolfine Steindling. The assets were moved into Swiss banks as a protectionary measure after the fall of the Berlin wall and have never been recovered.

This appeal is the second in the case, both of which have ruled in favour of Julius Baer. The latest appeal is not yet legally binding.

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