According to a press release issued on Sunday evening in Klagenfurt where the bank has its headquarters, the bank says that the business cooperation with Zagorec began in 2004, which can be proved, and that it has never been involved in any transaction with means and funds of the Croatian state or with funds stemming from the war.
Judicial bodies of Croatia, that have opened investigations against Zagorec on suspicion of white-collar crimes and murky business dealings, last month requested Austrian prosecutors to help them in efforts to establish all circumstances of Zagorec's business activities. The prosecutor's office in Klagenfurt has confirmed that it has launched an investigation following requests from Zagreb.
According to the press release which the Austrian APA news agency carried, the probe refers to none of the bank employees.
In addition, a former chairman of the managing board of Hypo Alpe Adria bank, Guenter Striedinger who is under investigation, terminated his business relations with the bank in August 2006.
The Austrian news magazine Profil published on Sunday that the Austrian judiciary had launched an investigation against Striedinger.
According to the bank's press release, the Hypo Group Alpe Adria is currently financing Zagorec or some of his companies with funds of some four million euros. Besides, the bank is currently financing five real estate projects in Croatia with the amount of 70 million euros.
All those loans are mortgage loans, the bank said.