PULA, April 8 (Hina) - The newly-appointed Istarska bank's management chairman Milenko Vidulin on Saturday said the bank would resume normal operations as of Monday after it de-blocked its accounts thanks to a 170-million-kuna loan
for its liquidity granted by the Croatian National Bank's (HNB) Council. The bank settled an intervention loan it incurred when the central bank appointed a temporary trustee for this regional bank. This Istrian financial institution also settled all announced payments. That is why it can resume regular operations and financial transactions as of Monday (April 10) when its branches and ATMs can start offering services for clients. Yesterday the National Bank's Council 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 difficulty. The
PULA, April 8 (Hina) - The newly-appointed Istarska bank's
management chairman Milenko Vidulin on Saturday said the bank would
resume normal operations as of Monday after it de-blocked its
accounts thanks to a 170-million-kuna loan for its liquidity
granted by the Croatian National Bank's (HNB) Council.
The bank settled an intervention loan it incurred when the central
bank appointed a temporary trustee for this regional bank. This
Istrian financial institution also settled all announced payments.
That is why it can resume regular operations and financial
transactions as of Monday (April 10) when its branches and ATMs can
start offering services for clients.
Yesterday the National Bank's Council 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 difficulty. 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.
At Saturday's news conference Vidulin added that in compliance with
the Government's decision, Istarska bank should receive the
injection of fresh capital in coming two months from a strategic
investor.
Vidulin predicted that the bank should subsequently become a solid
financial institution with a new structure of the ownership.
In the very beginning of normalisation of its work the bank will
restrict amounts paid to its clients.
(hina) ms