ZAGREB, March 19 (Hina) - The Croatian National Bank (HNB) has intervened in Rijecka Banka and secured the bank's liquidity, thus enabling it to fulfil its obligations towards its depositors, HNB governor Zeljko Rohatinski said on
Tuesday. The central bank is ready to help Rijecka Banka maintain liquidity, he added.
ZAGREB, March 19 (Hina) - The Croatian National Bank (HNB) has
intervened in Rijecka Banka and secured the bank's liquidity, thus
enabling it to fulfil its obligations towards its depositors, HNB
governor Zeljko Rohatinski said on Tuesday.
The central bank is ready to help Rijecka Banka maintain liquidity,
he added. #L#
Rijecka Banka yesterday used a collateral loan and the HNB made an
early purchase of its treasury bonds. After these two conditions
were met, the bank was granted 410 million kuna. Last night the
government and the bank signed a 408-million-kuna liquidity loan
based on bonds for a public debt, Rohatinski said, adding Rijecka
Banka had other property which could be used for maintaining
liquidity.
Rohatinski could not specify the bank's loss because HNB inspectors
have still not completed their investigation of the bank's
transactions, but he did confirm that it corresponded with the
figures mentioned lately. The estimated loss ranges between 83
million and 103 million US dollars.
Bayerische Landesbank, the bank's majority owner, yesterday gave
the state its 59.9 percent share in the bank at a price of one
dollar.
Rohatinski believes this is a good arrangement and that it will be
easier for the state to find a long-term solution for the bank.
The governor also believes a new strategic partner would be a good
solution. Several commercial banks have already expressed interest
in partnership.
According to available information, the criminal dealings of the
bank's main stockjobber, Eduard Nodilo, most probably started in
1998, although it is speculated that they started ever earlier, in
1996. Nodilo was arrested ten days ago.
The central bank believes that absolutely all mechanisms of control
and internal control in Rijecka Banka have failed. It is obvious
that the procedure and the limits were not respected. Apart from
this, the central bank demanded information from Rijecka Banka on
two occasions following anonymous tip-offs, but the bank replied
that everything was in order.
(hina) sb rml