PARLIAMENT DISCUSSES BILL ON BANKS

ZAGREB, Jan 23 (Hina) - During Wednesday's discussion on a bill on banks, a part of Croatian MPs criticised a government's idea, according to which the stock capital for establishing savings banks would increase to 40 million kuna (EUR5.3 million), and added this could bring their existence into question. According to the bill, savings banks, as well as banks, need to increase their stock capital from the current 20 to 40 million kuna by the end of 2006 and in line with a certain pace. Some MPs, especially those belonging to the Opposition, described the bill as "the obvious liquidation of savings banks" and what is even more dangerous the liquidation of competition. During the discussion, it was pointed to a special importance of savings banks, considering the fact that 85 percent of Croatian banks are owned by foreigners. Among other things, it was also suggested that savings banks' stock capital be reduced. The Opposition said the government's bill of amendments to the law on banks was the consequence of another obligation the government had assumed from the International Monetary Fund (IMF). Therefore, it was demanded of the government to forward to the parliament the documentation and instructions it received from the IMF and the World Bank. (hina) it sb