SAVINGS TO BE ENSURED PARTLY FROM BUDGET, PARTLY FROM PUBLIC DEBT

ZAGREB, March 14 (Hina) - Croatian Finance Minister Mato Crkvenac reiterated Tuesday that the state would this year pay back a part of citizens' secured savings in bankrupt banks, and would transform a part of the investments into public debt. Debts for secured savings in five banks under bankruptcy proceedings amount to about 3.2 billion kuna (US$400 million). So far the State Agency for Securing Savings Investments and the Rehabilitation of Banks (DAB) has paid a total of 782 million kuna (US$97.75 million). In order to pay back the savings investments, the budget should in the next five years set aside some 2.4 billion kuna (US$300 million). The Government plans to ensure 420 million kuna (US$300 million). The state would take care of the rest of the savings through an agreement with chosen banks on the transfer of secured savings. Crkvenac explained that the clients would be enabled to transfer their deposits from bankrupt banks into the chosen ones, and make fixed-term deposits with a favourable interest rate. One fifth of so transferred deposits could be drawn from accounts in the first year, and part of the savings would be transformed into public debt for a period of five years for which the government would issue bonds to banks, Crkvenac said. He stressed that practice had shown that a large part of the savings remained in well-ranking banks. It is important to the clients that their savings are not lost. It is important that every client be sure that their assets will remain in good banks, Crkvenac said. (hina) lml jn