GOVERNMENT TO TACKLE ISTARSKA BANK ISSUE THURSDAY

ZAGREB, March 29 (Hina) - The Croatian government will discuss the Istarska Bank issue on Thursday, as recently announced. Also expected is a debate on attacks on the government and the behaviour of some of its members. Announcements that the government would discuss Istarska Bank were made on Monday, after the ruling six-party coalition tackled the matter. Premier Ivica Racan said after the coalition debate the government would discuss Istarska Bank at the next session, and that the parliamentary majority would demand that Croatian National Bank (HNB) governor Marko Skreb be called to account for the situation in the banking sector. At tomorrow's session, the government is expected to discuss a HNB Council decision on measures taken in Istarska Bank, Cibalae Bank, and several savings banks. HNB's Council last Wednesday appointed temporary trustees for Istarska and Cibalae banks, and rescinded work permits for six savings banks. The appointment of a temporary trustee for Istarska Bank, and his decision to freeze payments from savings accounts in particular, elicited a series of reactions in the northern peninsula of Istria, and an especially harsh one from Ivan Jakovcic, the president of the Istrian Democratic Assembly party and Croatia's European Integration Minister. Due to a series of statements Jakovcic made recently, Premier Racan demanded a political apology. In the brouhaha over Istarska bank, the government will not accept threats of autonomy for Istria unless the government does what it is asked to, Racan said on Monday. (hina) ha jn