ZAGREB, March 15 (Hina) - Croatian National Bank vice-governor Cedo Maletic said on Friday that fraud in foreign exchange transactions caused damage to Rijecka Banka, but not such as to jeopardise the bank's equity. Clients will not
be affected, the bank's liquidity is completely satisfactory, Maletic told Hina on the phone.
ZAGREB, March 15 (Hina) - Croatian National Bank vice-governor Cedo
Maletic said on Friday that fraud in foreign exchange transactions
caused damage to Rijecka Banka, but not such as to jeopardise the
bank's equity. Clients will not be affected, the bank's liquidity
is completely satisfactory, Maletic told Hina on the phone. #L#
The central bank will send its inspectors to Rijecka Banka tomorrow
to assess the damage caused by foul dealings on foreign exchange
markets.
The bank's capital is so high that the loss cannot endanger it.
This will not affect the clients, but the shareholders, Maletic
said. The bank's officials confirmed this. They said that there was
no reason to panic, because the bank's liquidity was completely
satisfactory.
Maletic pointed out that shareholders, especially the state, were
backing Rijecka Banka and were prepared to cover the loss.
The bank's majority shareholder is Bayerische Landesbank with 59.9
percent of shares, while the state owns 25.1 percent of the bank's
shares.
Rijecka Banka on March 8 filed charges against the bank's chief
stockjobber, Eduard Nodilo, for overstepping his authority and
violating the bank's internal regulations.
Police are investigating the case. Nodilo is also suspected of
abuse of office and forging documents.
He was arrested and taken to the Rijeka County Court investigative
centre.
The Finance Ministry issued a statement confirming the bank's
liquidity and large reserves, adding the bank could fulfil its
obligations towards its depositors at any time.
Illegal acts by an employee cannot endanger a stable bank such as
Rijecka Banka, the Ministry said.
Based on the findings of the central bank's inspectors, the
government will next week decide how to remove the consequences of
the crime in Rijecka Banka, Vice-Premier Slavko Linic said in
Washington on Friday.
Croatian National Bank governor Zeljko Rohatinski said the bank's
liquidity was constantly monitored and was not questionable.
Rijecka Banka has about a billion kuna of uncommitted sources and
about 300 million US dollars on its foreign exchange account.
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