Decision ID: 000269

In June 1993 the 1971 Fund Executive Committee decided that the fact that banks were unwilling to give loans or extend overdrafts to businesses affected by the incident did not in itself constitute grounds for compensation under the Conventions, since cash flow problems could not be considered as falling within the notion of pollution damage. The Committee took the view that whilst the Fund could not provide funds to solve cash flow problems, the extra costs of financing overdrafts or other loans as a result of the incident would in principle form the basis of valid claims for compensation.

Date: 31.05.1993
Category: Pure economic loss (general)
Subject: Cash flow problems and financing of loans