PARLIAMENTARY MAJORITY WILL SEEK SKREB'S RESPONSIBILITY -- RACAN

ZAGREB, March 27 (Hina) - At its next session the Government will discuss the Istria Bank, and a parliamentary majority will soon request the responsibility of Croatian National Bank governor Marko Skreb for the situation in banking, Prime Minister Ivica Racan said Monday night after a meeting of the coordination of six ruling parties. Racan also requested a political apology from European Integration Minister Ivan Jakovcic to the Government for his recent claims. At the next session the Government will discuss the Istria Bank problem and see what it can do to curb the damage done to the bank. The Government will not do what it cannot do, as much as it is asked of it, Racan stressed. "The government will not participate in managing banks and companies in the Croatian Democratic Union (HDZ way," Racan said. He added the Government did not feel responsible for problems at the Istria Bank and would try to establish who is responsible at the next session. He assessed Skreb and the central bank were largely responsible for what had occurred in the past several years in banking -- for many scandals they could have, but did not prevent, the great outflow of money from banks to who knows where, and enormous sums of money used for the rehabilitation of the banks. A lot had been covered up what should not have been, and somebody should be held liable for that, Racan said. The ruling coalition would thus seek responsibility of governor Skreb at the next Government session in two weeks, he said. He added he did "not accept that the government should be struck from the Government, notwithstanding the source -- an individual minister or a party participating in the coalition government". The Government also does not accept that in this commotion created around the Istria Bank problem some are threatening by Istria's autonomy unless the Government does what is asked of it. "The Government will not accept such rhetorics, conduct and threats, so I request an apology from Minister Jakovcic top the Government," Racan asserted. Jakovcic stated he was satisfied with the fact that the Istria Bank problem would be discussed at the next Government session, which indicates that there is political will for assistance. He expressed hope the Government would find a solution and the Bank would be able to conduct further business. "Today's meeting showed how difficult the problems in banking are and I hope the Croatian National Bank governor would be dismissed from his duties as, in my opinion, he is incapable of doing the job," Jakovcic said. Asked how he could have stated he would request autonomy for Istria unless the Bank is helped out, Jakovcic said he was not only a minister, but the president of the Istrian Democratic Assembly. On March 22, the central bank's Council made a decision on appointing a temporary trustee for the Istria Bank, after the supervision of the bank's activities established that potential losses were greater than the liable capital. Last Friday, following the pressure and rush of customers who wanted to take back money from their accounts, the temporary trustee, Boris Busac, made a decision on the cessation of the payment of all savings deposits from clients' accounts in next three months. The Istrian Chamber of Commerce on Monday insisted that the HNB, the Government and the Sabor should reconsider Busac's decision. The Chamber asked for a loan from the HNB means or from the budget to help the Istria Bank to pay money to clients who ask for it. (hina) lml