ZAGREB, Oct 4 (Hina) - Between 1992 and 1994, 22 banks, most of which were state-owned at the time, granted around 27,000 management buy-out loans totalling some EUR211 million, Croatian National Bank governor Zeljko Rohatinski told
parliament on Friday.
ZAGREB, Oct 4 (Hina) - Between 1992 and 1994, 22 banks, most of which
were state-owned at the time, granted around 27,000 management buy-
out loans totalling some EUR211 million, Croatian National Bank
governor Zeljko Rohatinski told parliament on Friday. #L#
Of the EUR211 million worth of loans, 23 million were unpaid in late
June 2002 and given the maturity deadlines, the loan repayment rate
is around 90 percent, the governor said.
Interest ranged between five and 12 percent, which is very
favourable given the fact that interest on kuna loans in 1992
amounted to 21 percent and in 1993 to as much as 26 percent.
Earmarked credits for the purchase of shares or so-called
management buy-out loans are not a deviation but an integral part of
the model of privatisation which had its legal framework,
Rohatinski said.
The governor said that most of the loans had been granted by state-
owned banks so the state had or could have had full control over the
process.
Rohatinski said that the HNB report did not contain the list of
beneficiaries of management buy-out loans, the exclusive reason
being the fact that its availability would be contrary to the law on
banks and the HNB.
Rohatinski referred MPs to the Croatian Privatisation Fund for all
relevant information.
Rohatinski said that as far as he knew there was no legal provision
banning the HFP from making those data available if requested. In
the continuation of the 25th session the parliament discussed the
HNB's report on management buy-out loans.
(hina) rml sb