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PAYMENT OF SECURED SAVINGS STARTS FRIDAY

ZAGREB, June 24 (Hina) - The State Agency for the Insurance of Savings Investments and Rehabilitation of Banks on Friday is to begin paying out secured savings accounts for banks which are now bankrupt. The Agency will first being payments of savings accounts with the Zupanjska banka via the Slavonska banka. Some 300 Zupanjska banka clients have already been sent written payment notices which will enable them to withdraw their savings in the Slavonska banka, director of the Agency, Mladen Sunjic said following Thursday's Government session. Depositors will be advised on time regarding payments of savings accounts at other banks. Sunjic believes that payment of savings for all bankrupt banks should begin during July. This involves some 160,000 savings accounts all together and Sunjic asked that depositors be patient as this involves a great deal of technical preparation and effort. Sunjic emphasised that resources
ZAGREB, June 24 (Hina) - The State Agency for the Insurance of Savings Investments and Rehabilitation of Banks on Friday is to begin paying out secured savings accounts for banks which are now bankrupt. The Agency will first being payments of savings accounts with the Zupanjska banka via the Slavonska banka. Some 300 Zupanjska banka clients have already been sent written payment notices which will enable them to withdraw their savings in the Slavonska banka, director of the Agency, Mladen Sunjic said following Thursday's Government session. Depositors will be advised on time regarding payments of savings accounts at other banks. Sunjic believes that payment of savings for all bankrupt banks should begin during July. This involves some 160,000 savings accounts all together and Sunjic asked that depositors be patient as this involves a great deal of technical preparation and effort. Sunjic emphasised that resources have only been ensured for savings and not other types of accounts. Sunjic also explained that some companies had transferred their funds to private savings accounts. These will not be paid out by the Agency, he said. Bankruptcy procedures are being conducted for seven banks and one savings co-op - the Zupanjska, Ilirija, Glumina, Komercijalna, Neretvanska Commercial, Gradska, Osijek and Vukovarska banks and the Gradanska savings co-op Zagreb. The Croatian National Bank submitted a request for bankruptcy proceedings to be instigated against one more bank and three savings co-ops: Trgovacka-turisticka banka, Split; Invest co-op Zagreb, Gold savings co-op, Split and the Mediteran savings co-op Split. The banking crisis involves 12 financial institutions with some 3.3. billion kunas of insured savings, Sunjic said. He stressed that the Agency retains the right to supervise and control the legal basis for individual requests for payment of savings accounts. The Agency emphasised that all indisputable cases would be resolved as soon as possible and advices would be sent regarding payment procedures for the remaining banks involved. (hina) sp

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