CROATIA MARKS TEN YEARS OF MONETARY INDEPENDENCE

ZAGREB, Dec 21 (Hina) - The Croatian National Bank (HNB) on Friday marked the tenth anniversary of Croatia's monetary independence and Dec. 23, 1991, when a decree on the central bank came into force and the Croatian dinar was introduced as a transitional currency. Recalling the most important events of the past decade, HNB governor Zeljko Rohatinski said the process of Croatia's monetary disassociation from the former federation began in July of 1991 with the exclusion of Croatia and Slovenia from ex-Yugoslavia's joint foreign currency market. The HNB decree came into force in December of 1991, when the Croatian dinar was introduced as the transitional currency, while the kuna was introduced as Croatia's official currency on May 30, 1994. Rohatinski also recalled Croatia's admission to international financial institutions, for example to the International Monetary Fund on Dec. 15, 1992, and the Basel-based Bank for International Settlements in mid-1997. The governor also recalled the crises domestic business banks had gone through, which were followed by a cleansing of the market that resulted in the state's renunciation of ownership in banks. Around 90 percent of the banking sector is currently owned by foreigners. The arrival of foreign banks has enabled the consolidation and stabilisation of the banking system, as well as the adjustment of domestic regulations with world standards, said Rohatinski. Parliament has already adopted new laws on the HNB and money transfers, and has yet to pass new acts on banks and foreign exchange operations. The governor pointed to the existing lack of full confidence in the domestic currency, despite years of stability. In attendance at today's anniversary session were representatives of the legislative and executive authorities, international financial institutions active in Croatia, the heads of Croatian business banks, and past and incumbent HNB officials. (hina) ha