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CROATIAN NATIONAL BANK SUGGESTS BANKRUPTCY FOR FOUR BANKS

ZAGREB, March 25 (Hina) - The Croatian National Bank (HNB) advisory board on Thursday decided to initiate as soon as possible bankruptcy proceedings in Komercijalna Banka d.d. Zagreb, Gradska Banka d.d. Osijek, Zupanjska Banka d.d. Zupanja, and Glumina Banka d.d. Zagreb. The proposal would also be sent to competent courts, the HNB said in a statement. The four banks covered about 6.5 per cent of the Croatian banking system's balance amount, with some US$500 million of total, that is, about US$400 million of insured savings. In all four banks potential losses are far higher than the insured capital. The HNB advisory board also reminds that the highest state levels have guaranteed that the payment of deposits, insured through the State Agency for the Insurance of Deposits and Rehabilitation of Banks, up to the amount of 100,000 kuna per depositor would begin as early as July 1, 19
ZAGREB, March 25 (Hina) - The Croatian National Bank (HNB) advisory board on Thursday decided to initiate as soon as possible bankruptcy proceedings in Komercijalna Banka d.d. Zagreb, Gradska Banka d.d. Osijek, Zupanjska Banka d.d. Zupanja, and Glumina Banka d.d. Zagreb. The proposal would also be sent to competent courts, the HNB said in a statement. The four banks covered about 6.5 per cent of the Croatian banking system's balance amount, with some US$500 million of total, that is, about US$400 million of insured savings. In all four banks potential losses are far higher than the insured capital. The HNB advisory board also reminds that the highest state levels have guaranteed that the payment of deposits, insured through the State Agency for the Insurance of Deposits and Rehabilitation of Banks, up to the amount of 100,000 kuna per depositor would begin as early as July 1, 1999. The HNB also believes it is of utmost importance for the Croatian Government to consider additional protection of deposits as soon as possible. (hina) jn rml

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