CENTRAL BANK GOVERNOR: I HAVEN'T HEARD OF BLB'S CLAIM FOR DAMAGES

ZAGREB, April 11 (Hina) - The governor of the Croatian National Bank (HNB), Zeljko Rohatinski, on Thursday said he had not heard of any possible claim for damages by Bayerische Landesbank (BLB) related to the Rijecka Bank affair. #L# He noted that the contract between the State Agency for Bank Rehabilitation and BLB contained a protective clause about any possible damages to BLB in precisely defined circumstances and at an amount of 20 per cent of the amount paid for stocks obtained. Rohatinski reminded that when BLB purchased 60 percent of Rijecka Bank stocks in May 2000 it conducted a complete inspection of the Bank's due diligence and did not find any irregularities. If conditions that could activate the protective clause in the contract arose, BLB could demand compensation of US$8 million. However, it would be necessary to establish that the state knew about the irregularities in Rijecka Bank and that it failed to inform the buyer, Rohatinski emphasised. The amount of possible damages, he said, is symbolical in relation to the damages ascertained (amounting to US$98 million). (hina) sp sb