AGREEMENT ON PRIVATISATION OF RIJECKA BANK SIGNED WEDNESDAY

RIJEKA, May 3 (Hina) - Chairman of the Rijecka Bank management board Ivan Stokic, a member of the Bayerishe Landesbank management board, Dietrich Wolf, and director of the Croatian Agency for the Rehabilitation of Banks and Securing of Investments Savings (DAB), Marinko Filipovic, on Wednesday signed an agreement on privatisation by which the Bayerishe Landesbank became the owner of 59.9 per cent of Rijecka Bank stock. The Bayerishe Landesbank bought the bank's shares worth 334 million kuna (US$41.75 million) and registered new shares worth 284 million kuna (US$35.5 million). Stokic stressed with this act the bank not only gained a new majority share holder, but its share capital was increased significantly, by 77 per cent, thus gaining security in business, as well as new foundations for development on the domestic and foreign markets. Croatian Deputy Prime Minister Slavko Linic applauded the fact that Rijeka and Croatia had received a financial institution which would be able to follow the development of economy. He added that through this agreement the Government gained in credibility, because after such a respectable investor, other investors are making the same decision. (hina) lml mm