CROATIA AND BOSNIA TO ESTABLISH INTER-BANK COOPERATION

( Editorial: --> 0018 ) ZAGREB, March 16 (Hina) - Bosnian central bank governor Peter Nicholl met his Croatian counterpart Marko Skreb in Zagreb on Monday to discuss options for cooperation between the two central banks. Nicholl outlined the Bosnian central bank's tasks and plans for the next period, especially preparations for the introduction of the convertible mark as the national currency. He described the visual appearance of the new banknotes, whose maiden appearance is expected in May, the Croatian National Bank said in a statement. The two governors discussed the establishment of regular payment transactions and inter-bank cooperation between the two countries. Governor Skreb and his associates informed their guest that the Croatian kuna was now completely convertible for all current transactions. The central bank foreign exchange reserves totalled over US$2.5 billion, exceeding the total money supply. The total kuna amount in circulation was around 5 billion. About a tenth of that amount was in circulation in neighbouring Bosnia-Herzegovina, the statement said. "Even if the whole of that amount was simultaneously converted into the new official currency of Bosnia-Herzegovina, that would not jeopardise the convertibility of the kuna or the liquidity of the Croatian financial system," the statement said. (hina) mm as/mrb 161624 MET mar 98