PULA, March 26 (Hina) - Istra County prefect Stevo Zufic on Sunday urged the prime minister and the governor of the Croatian National bank (HNB) to immediately open Istarska Bank and ensure normal business and payment of saving
deposits to all depositors. In an open letter to Premier Ivica Racan and HNB governor Marko Skreb, Zufic suggests the earmarking of funds from the state budget and the HNB so that every depositor may be paid out his savings and have his trust in the Bank restored. The prefect seeks a financial rehabilitation which will help Istarska bank survive in Croatia's banking sector. "We seek nothing more than to have the bank brought back to the state prior to the tragic events of the last few days, that it be opened for all payments and all other functions for the depositors, that they be free to manage and be paid the last lipa on their account if so th
PULA, March 26 (Hina) - Istra County prefect Stevo Zufic on Sunday
urged the prime minister and the governor of the Croatian National
bank (HNB) to immediately open Istarska Bank and ensure normal
business and payment of saving deposits to all depositors.
In an open letter to Premier Ivica Racan and HNB governor Marko
Skreb, Zufic suggests the earmarking of funds from the state budget
and the HNB so that every depositor may be paid out his savings and
have his trust in the Bank restored.
The prefect seeks a financial rehabilitation which will help
Istarska bank survive in Croatia's banking sector.
"We seek nothing more than to have the bank brought back to the state
prior to the tragic events of the last few days, that it be opened
for all payments and all other functions for the depositors, that
they be free to manage and be paid the last lipa on their account if
so they want," Zufic says in the letter, pointing out any other
solution will not be accepted in Istra, but lead to lasting
political instability and further radicalise relations in the
country.
Prefect Zufic reminds Premier Racan and governor Skreb that the
bank's temporary administrator, Boris Busac, "with his lack of
expertise, unconscientious and damaging behaviour has left
lasting, incalculable repercussions on the bank, severely damaging
the depositors' interests, and seriously unsettling the entire
Istrian public."
Zufic said earlier today he had been told the appointment of a
temporary administrator had led Istarska Bank depositors, in the
wake of negative experiences with some banks in the past, to
withdraw about six million U.S. dollars in only one day, Friday.
This was the reason Busac, appointed by the HNB Council on March 22,
passed a decision to freeze payments from savings accounts and
deposits for a period of three months.
According to Zufic, the temporary administrator should have
assisted the bank by establishing the state of affairs and
suggesting a solution. Unfortunately, the prefect said, "the
result of his work is reflected in the fact that the administrator
managed to close the Bank in only one day."
Zufic said a great part of the blame for the situation in Istarska
Bank lay with the HNB, the government, and some officials who, he
pointed out, had turned a deaf ear when asked to do something to
prevent the worst from happening.
(hina) ha