Postova Banka SA and Istrokapital SE v Hellenic Republic : Sovereign Bonds and the Puzzling Definition of ‘Investment’ in International Investment Law

The blurry contours of the notion of investment make the assessment of investment arbitral tribunals' jurisdiction ratione materiae extremely problematic, particularly in cases concerning sovereign bonds. Arbitral tribunals have addressed on several occasions the question of whether government bonds fall within the definition of investment under the ICSID Convention and the bilateral investment treaties (BITs) at issue in those cases. In Poštova Banka SA and Istrokapital SE v Hellenic Republic, the Tribunal added another piece to this complicated jigsaw by denying its jurisdiction over a claim arising out of the 2012 Greek public debt restructuring. Notably, the present decision seems to be at odds with the prevailing arbitral case law on this issue. This case comment seeks to analyse the reasoning employed by the Tribunal and to identify the possible impact of its decision on future sovereign debt restructurings