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CENTRAL BANK: TOTAL DAMAGE IN RIJECKA BANKA - USD98 MILLION

ZAGREB, March 21 (Hina) - According to preliminary reports by the Croatian National Bank (HNB), Rijecka Banka has incurred a loss worth 74 million US dollars and the maximum damage could amount to USD98 million, Deputy Prime Minister Slavko Linic said at a government session on Thursday.
ZAGREB, March 21 (Hina) - According to preliminary reports by the Croatian National Bank (HNB), Rijecka Banka has incurred a loss worth 74 million US dollars and the maximum damage could amount to USD98 million, Deputy Prime Minister Slavko Linic said at a government session on Thursday. #L# An agreement by which one of the bank's majority owners, Bayerische Landesbank, would give the state its entire share at a price of one dollar, should be signed by the end of this week. The state would thus become the owner of some 85 percent of the bank's stock, Linic said. He added that a public tender for the sale of the state share would be announced at the end of this week or early next week. The new strategic partner would take over the obligation to recapitalise the bank and cover the damage caused by a recent embezzlement scandal. Linic says that seven banks have expressed interest in buying the bank's shares. It is believed that the new owner could be selected as early as next week. The government today gave the HNB state guarantees for the payment of a short-term loan to Rijecka Banka amounting to 863.7 million kuna. The loan is granted on the basis of Rijecka Banka's bonds. (hina) rml

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