ZAGREB, April 7 (Hina) - The Croatian National Bank's (HNB) Council on Friday recalled a temporary trustee from the Istarska bank, after it considered effects of Thursday's decision of the Government to issue new bonds replacing old
ones for banks in trouble. The HNB Council also concluded that there was no basis for recalling a temporary trustee from another regional bank - the Cibalae bank. The decision of the central bank's Council to appoint the temporary trustee in the Istarska bank was legally based on the fact that according to findings of the HNB control, the liable capital of that bank was negative 44.4 million kuna (5.55 million US dollars) in the end of last September. Thanks to extraordinary receipts according to the aforementioned replacing bonds totalling 57.53 million kuna ($7.19 million), the liable capital turned to be positive with the date 30 March 2000 a
ZAGREB, April 7 (Hina) - The Croatian National Bank's (HNB) Council
on Friday recalled a temporary trustee from the Istarska bank,
after it considered effects of Thursday's decision of the
Government to issue new bonds replacing old ones for banks in
trouble.
The HNB Council also concluded that there was no basis for recalling
a temporary trustee from another regional bank - the Cibalae bank.
The decision of the central bank's Council to appoint the temporary
trustee in the Istarska bank was legally based on the fact that
according to findings of the HNB control, the liable capital of that
bank was negative 44.4 million kuna (5.55 million US dollars) in the
end of last September. Thanks to extraordinary receipts according
to the aforementioned replacing bonds totalling 57.53 million kuna
($7.19 million), the liable capital turned to be positive with the
date 30 March 2000 and comes to 6.35 million kuna ($0.79 million).
This created conditions for recalling the temporary trustee.
In view of the fact that new bonds produced insignificant effect on
business indicators of the Vinkovci-based Cibalae bank and did not
change any of previously established indicators of its state of
affairs, there was no reason for recalling the trustee from that
financial institution, the HNB Council said.
(hina) mm ms