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PARLIAMENT FAILS TO ADOPT LAW ON DOMESTIC MONEY TRANSACTIONS

ZAGREB, Dec 12 (Hina) - The Croatian parliament adjourned the 18th session around noon Wednesday and postponed voting on amendments to a final bill on domestic payment transactions until further notice. It was announced the session would resume in the afternoon. The non-passing of the domestic payment transactions law has negative effects on the passing of some other acts which are on the agenda of Wednesday's session. The domestic payments law was not passed because the government rejected a proposal by parliament's Finance Committee and parliamentary benches to allow the Croatian Post (HP) to carry out the transactions, next to deposit banks and the Croatian National Bank (HNB). A government's representative, Damir Kustrak, said that including HP in domestic payment transactions would blow apart the bill's entire concept. The HNB vice governor, Cedo Maletic, supports Kustrak. Maletic said the HP would
ZAGREB, Dec 12 (Hina) - The Croatian parliament adjourned the 18th session around noon Wednesday and postponed voting on amendments to a final bill on domestic payment transactions until further notice. It was announced the session would resume in the afternoon. The non- passing of the domestic payment transactions law has negative effects on the passing of some other acts which are on the agenda of Wednesday's session. The domestic payments law was not passed because the government rejected a proposal by parliament's Finance Committee and parliamentary benches to allow the Croatian Post (HP) to carry out the transactions, next to deposit banks and the Croatian National Bank (HNB). A government's representative, Damir Kustrak, said that including HP in domestic payment transactions would blow apart the bill's entire concept. The HNB vice governor, Cedo Maletic, supports Kustrak. Maletic said the HP would perform money transfers through contracts with banks, but if it were stated as bearer of the transactions, other non-deposit institutions would have to be given the same status as well. The bill is aimed at abolishing the monopoly of the Money Transfer Service (ZAP) in payment transactions. It has been suggested that transactions be exclusively performed by deposit banks and the HNB. Damir Kajin of the opposition's Istrian Democrats warned that all major Croatian banks were in the hands of foreigners. Those banks, prior to their sale, were financially rehabilitated by the state budget, but according to Kajin, this is not enough and they want to get rid of any competition, including the non-profit HP. He pointed out that in case the bill was adopted, the HP would remain a burden to the state budget. He called on the government to say whether the bill was a part of the arrangement with the International Monetary Fund. I am not a Euro-skeptic, but we have to find a way to protect our institutions, particularly the HP, which plays a strong social role, Kajin added. (hina) np sb

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