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CRO RETURNEES CRITICISE GOVT PLAN FOR RETURN OF INSURED DEPOSITS

ZAGREB, March 14 (Hina) - The Croatian Returnees Society believes a government plan on the payment of saving deposits in bankrupt banks is "illogical and counter-productive." Returnees believe the government's proposal to have insured deposits transferred to "selected banks for a period of five years" is unacceptable, the Society said in a statement on Tuesday. The government planned on paying out part of the insured deposits this year, and transferring part into quality banks as five-year time deposits, for which the state would issue banks with bonds. The returnees' society points out in the statement "every immigration and investment is very risky until further notice," and that the government can restore emigrants' trust in Croatia only by urgently settling the issue of blocked saving deposits in all bankrupt banks. The statement says the Glumina Bank board of depositors forwarde
ZAGREB, March 14 (Hina) - The Croatian Returnees Society believes a government plan on the payment of saving deposits in bankrupt banks is "illogical and counter-productive." Returnees believe the government's proposal to have insured deposits transferred to "selected banks for a period of five years" is unacceptable, the Society said in a statement on Tuesday. The government planned on paying out part of the insured deposits this year, and transferring part into quality banks as five-year time deposits, for which the state would issue banks with bonds. The returnees' society points out in the statement "every immigration and investment is very risky until further notice," and that the government can restore emigrants' trust in Croatia only by urgently settling the issue of blocked saving deposits in all bankrupt banks. The statement says the Glumina Bank board of depositors forwarded to Premier Ivica Racan and Finance Minister Mato Crkvenac a motion by which Croatia would incur debts for a period of six or seven years to immediately pay the entire debt to all depositors. The returnees' society believes foreign investors' offers and the assistance the international community has been offering Croatia cannot be compared with the funds emigrants invested in Croatia until 1998, estimated at US$40 billion. (hina) ha jn

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