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PM Kosor to meet bankers on Wednesday

ZAGREB, Feb 14 (Hina) - Prime Minister Jadranka Kosor has set for Wednesday a meeting with officials from leading commercial banks in Croatia which should focus on the banks' participation in the modified bailout programme called "Model A loans" for entrepreneurs and on their role in subsidies to be given from the state budget to first-time flat buyers.

Speaking in an interview with Croatian Radio on Monday, Kosor said she would meet with bankers on Wednesday to discuss how to spread the burden of the crisis as evenly as possible.

Banks operating well in Croatia must take on a part of the burden of the economic crisis, she said.

The Croatian Banking Association (HUB) director, Zoran Bohacek, today declined to comment on media speculations that PM Kosor would ask bankers to reduce interest rates or the government would consider imposing levies on banks, following Hungary's example.

"Let's wait till we know more," Bohacek said.

The T-HT telecom CEO and head of the Croatian National Competitiveness Council, Ivica Mudrinic, said today that the tax pressure in Croatia was too high both for the economy and for citizens, adding that any new taxes would put an additional burden on citizens and the economy.

Mudrinic said that the Croatian Employers' Association (HUP) was not in favour of imposing taxes on banks.

Banks in Croatia made HRK 4.6 billion in pre-tax profits in 2010, up 8.8 per cent on the year, the Croatian National Bank (HNB) said last week. In 2009, pre-tax profit was down HRK 1.5 billion on the year, more than 26 per cent. The data refers to 33 banks in 2010 and 32 in 2009.

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