CRO GOVERNMENT DETERMINED TO CLEAR SITUATION IN DUBROVACKA BANK

( Editorial: --> 8935 ) ZAGREB, April 23 (Hina) - The Croatian Government was briefed on the financial restructuring of Dubrovacka Bank at a Thursday session. The bank has been in 100 per cent state ownership since Monday. The Government demands that the bank's emergency administrator Niko Koncul restore the shaken trust in the bank and organise it as a reputable financial institution. The Government voiced its support to the police and other bodies involved in shedding light on the situation in Dubrovacka Bank to be resolute in completing the investigation. A new law on banks will soon be forwarded to Parliament for discussion. The new law will be more conservative than the present one and will call for greater control over the banking system. According to Croatian National Bank Governor Marko Skreb, what lays ahead is loan auditing, estimation of the debtors' standing and loan re-classification. Interior Minister Ivan Penic said Dubrovacka Bank director Neven Barac, currently in detention, was believed to have given some people long-term loans with a one per cent annual interest. Penic announced four additional charges would be pressed. He also spoke about Dubrovacka Bank's connection with foreign companies, including tourist companies from Liechtenstein, Belgrade and Sarajevo. Also suspect was the bank's connection with investments into a Moscow hotel. An investigation showed that the adaptation of one hotel room cost DM100,000 which, Penic said, was way too expensive. (hina) ha jn/mb 231650 MET apr 98