ZAGREB, Nov 6 (Hina) - Privatisation of Privredna Bank Zagreb (PBZ), Rijecka Bank and Splitska Bank is under way, and by the end of this year contracts should be signed with foreign strategic investors interested in the Croatian
banking industry, said Mladen Sunjic, the director of the state agency for the deposit insurance and bank rehabilitation.
ZAGREB, Nov 6 (Hina) - Privatisation of Privredna Bank Zagreb
(PBZ), Rijecka Bank and Splitska Bank is under way, and by the end of
this year contracts should be signed with foreign strategic
investors interested in the Croatian banking industry, said Mladen
Sunjic, the director of the state agency for the deposit insurance
and bank rehabilitation.#L#
Although it is too early to speak of its models, privatisation will
be conducted in Dubrovacka Bank and Croatia Bank next year, Sunjic
announced at the end of the 24th meeting of presidents and members
of management of banks entitled "Restructuring and Rehabilitation
of Banks." This event was organised in Zagreb by the Croatian
institute for banking and insurance (HIBO).
Possible investors in the Privredna, Rijecka and Splitska banks are
currently in data rooms to check due diligence.
The Croatian state will retain controlling packages of 25 percent
plus two shares of each bank in order to prevent the making of
potentially negative decisions which may pose a threat to the
existence of a bank, Sunjic added.
The offered price cannot be the only criterion for the
privatisation, Sunjic maintained. Croatia's interest is to create
a sound economic climate which will be favourable for intensifying
the interest of big foreign banks that can offer not only money but
also introduce know-how and a new manner of work, contributing to
the development of the banking market.
Sunjic advocated the opening of the Croatian market for foreign
capital without prejudice.
Commenting on the causes of illiquidity in Croatia, the HIBO
director, Pero Jurkovic, pointed to problems of structural nature,
a lack of global mechanisms for monetary and credit policies,
delays in settling financial obligations between the state end
state funds, and unrestructured companies which make losses.
According to Jurkovic, one of causes lies in "inhumane behaviour"
which he also described as "utter banditry" referring to failures
to meet one's obligations and respect rights of creditors.
(hina) ms