HNB REPORTS THREE OFFERS FOR RECAPITALISATION OF ISTARSKA BANK

ZAGREB, March 31 (Hina) - The Zagrebacka Bank, Privredna Bank, and the Rijecka Bank have shown interest in the recapitalisation, i.e. take-over of the Istarska Bank. By noon on Friday there were no inquiries regarding the Cibalae Bank, Croatian National Bank (HNB) officials told Hina. Asked about further decisions and the possible take-over procedure, the HNB public relations office said that, since the Government has formed a special ministerial working group, which is to consider and suggest to the Government solutions regarding the situation in the Istarska Bank, the temporary administrator of the Istarska Bank and the HNB will cooperate with members of the working group on finding the most suitable solution for the situation in the bank. Asked to comment on the offer by the economic-interest group Croatian Association of Banks to pay the insured part of savings to the Istarska and Cibalae banks' depositors, HNB officials said the transfer of insured savings from problematic banks to healthy ones was possible on condition that bankruptcy proceedings were first declared in the problematic bank. The HNB hopes such a solution will not be applied in the case of the two banks. (hina) rml