FINANCE MINISTRY DISMISSES CLAIMS ABOUT SECRET ACCOUNT OF LATE PRESIDENT

ZAGREB, Nov 8 (Hina) - The Croatian Finance Ministry on Wednesday issued a statement dismissing claims by some Croatian media saying the late Croatian president Franjo Tudjman had "set aside" one hundred million US dollars from the sale of Croatian Telekom on a private bank account in Ireland. The US$102 million from the sale of Croatian Telekom shares deposited in the US Chase Manhattan Bank office in Ireland had been spent entirely on the payment of Croatia's foreign currency liabilities. "Deutsche Telekom paid a total of US$807.5 million for 35 percent of Croatian Telekom shares. Part of that money, amounting to US$102,397,426.22, was transferred to the Croatian Finance Ministry's account at the Chase Manhattan office in Dublin on October 7 1999. That money was drawn entirely and spent for the payment of Croatia's foreign currency liabilities," the statement read. According to the statement, on December 2 1999, US$100 million was deposited on the Croatian National Bank account. "That amount was used for the payment of a matured foreign loan worth US$40,570,521.05 granted for the construction of the Zagreb- Gorican highway, whereas US$59,429,478.95 was converted by the HNB into kuna and spent for the payment of domestic currency liabilities as set in the 1999 state budget. The remaining part, amounting to US$2,397,426.22, was used, along with the interest of US$906,853.45, for the payment of Croatia's foreign currency obligations as determined by the state budget for 2000," the statement said. The transactions were carried out in line with the law, the Ministry said. (hina) jn rml