The Province is a defendant in various lawsuits relating to its default on its public external indebtedness.
There are currently 13 lawsuits pending against the Province relating to the Province’s 2002 default on its
bonds.
In the United States of America, there are currently seven lawsuits against the Province regarding due and
unpaid interest and principal, amounting to USD 509,000 and EUR 201,000 (excluding interest). As of the date of
this Luxembourg Listing Prospectus, there have been final and non-appealable judgments against the Province in six
of these lawsuits and one case remains pending.
In Germany, there are four lawsuits against the Province, of which
judgments against the Province in three of these cases are final and non-appealable and one is still pending
resolution of an appeal filed by the Province. The principal amount of these lawsuits (excluding interest) totals EUR
2,517,000.
In Switzerland, there are two lawsuits against the Province, for a principal amount of CHF 570,000
excluding interest. In both lawsuits there has been a final and non-appealable judgment entered against the Province.
The total amount of unpaid interest and principal due pursuant to these judgments is less than 0.1% of the Province’s
total revenues included in its budget for 2011. The Province can give no assurance that further litigation will not
result in even more substantial judgments against the Province. Present or future litigation could result in the
attachment or injunction of assets of the Province that it intends for other uses, including payments due under the
Notes, and could have a material adverse effect on the Province’s public finances.
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