REGENT FUND BECOMES MAJORITY OWNER OF ISTARSKA BANKA

PULA, Dec 27 (Hina) - London's Regent Fund on Wednesday became the majority owner of Istarska Banka following 186-million-kuna worth recapitalisation through Zadar's Dalmatinska Banka, another acquisition of Regent Fund. This decision was adopted at a general assembly of Istarska Banka, held in Pula today. Istarska Banka continues operating as an independent legal entity and retains its recognisable name with its new role guaranteeing development, increased value on the market and full security for all clients. The take over puts an end to the agony which lasted since March this year, when the bank's accounts were frozen and a trustee was appointed. According to the head of the Istarska Banka management board, Milenko Vidulin, the reasons for the crisis of Istarska Banka were, among else, the outflow of one third of deposits due to the centralisation of accounts in state banks and the misinterpretation of the law on government bonds, which resulted in 172 million kuna worth of losses in relation to the bank's stock capital worth 213 million kuna. New investments will be sufficient for enabling the bank to strengthen its stock capital needed for regular operation. (hina) rml