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CROATIA SUCCEEDS IN RETURNING USD11 MILLION DEPOSIT FROM LONDON

ZAGREB, Aug 21 (Hina) - The Croatian Finance Ministry said on Monday Croatia had returned a foreign currency deposit from London, blocked since 1992, which exceeds US$11 million with interest.
ZAGREB, Aug 21 (Hina) - The Croatian Finance Ministry said on Monday Croatia had returned a foreign currency deposit from London, blocked since 1992, which exceeds US$11 million with interest.#L# After several years of court proceedings, Croatia's Finance Ministry managed to return the $8,633,402 foreign currency deposit, which totals $11,094,662 with accompanying interest rates. This is the first time Croatia has succeeded in returning part of its funds which are blocked abroad. According to a ministry statement, the deposit was made in 1992 as an account for an untied loan with WESTPAC BANKING CORPORATION London. The loan was never effected. Croatia's ownership over the deposit was disputed due to unclear legal matters after the financial mediator, Australian insurance firm Allen Allen & Hemsley, closed its branch in London which Croatia had signed an agreement with to obtain the loan. Allen Allen & Hemsley and Croatia's Finance Ministry agreed to block the deposit with the National Westminster Bank London for the duration of the court proceedings. Croatia proved in an English court its ownership over the disputed deposit, which was returned to it by court order. Finance Minister Mato Crkvenac has pointed out this is the first time Croatia has succeeded in returning money it owns but which is blocked abroad. The Finance Ministry will continue fighting to return all similar deposits which belong to Croatia, but are disputed and blocked on various accounts abroad or in Croatia due to war circumstances, legal or business uncertainties, the minister said. (hina) ha jn

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