BANK MANAGER ERCEGOVIC ARRESTED IN ITALY

ZAGREB, Jan 12 (Hina) - The Italian police yesterday arrested Ljerka Ercegovic, former chairwoman of the board at Hrvatska postanska banka, on the basis of an international warrant, Croatian Interior Ministry spokesman Slavko Rako told Hina on Friday. Interpol's office in Rome today officially notified the organisation's office in Zagreb that Ercegovic, after whom Croatia filed an international arrest warrant earlier this week, had been arrested by Italian police, said Rako. He added the same note said Ercegovic was in hospital under police surveillance. The Interior Ministry will notify the Justice Ministry, which is authorised to file an extradition request for Ercegovic. Before travelling to an Italian hospital, Ercegovic received medical treatment for high eye pressure in Slovenia. She is suspected of damaging Hrvatska postanska banka for 34 million kuna ($4.25 million) at the instigation of Miroslav Kutle, a media tycoon detained in a Zagreb prison on economic crimes charges. Ercegovic was put under investigation early last summer. The investigation was expanded in mid-December due to contentious loan transactions between her bank and several Croatian and Austrian companies. (hina) ha