GRANDINVEST CORPORATION FORWARDS LETTER TO CRO PRESIDENT

( Editorial: --> 1996 ) ZAGREB, Sept 21 (Hina) - The California-based investment group Grandinvest Corporation on September 19 forwarded a letter to Croatian President Franjo Tudjman in relation to investing into Croatia's Glumina Bank. The President's Office confirmed the reception of the letter, which Glumina Bank delivered with a translation to Hina on Monday. The Corporation, which includes various large U.S. and Israeli companies, assessed that, through a few formal and informal meetings with representatives of the Croatian National Bank (HNB) and some ministries, at their request, they "(got) an impression it (was) very hard to reach the decision-makers and describe their plan". The investors pointed out they were "stunned that, despite an offer to invest up to US$75 million in a relatively young, post war Croatian economy, (...) a meeting with an official decision-maker was not possible. "Not making a minimal effort to check the investor's offer might create economic damage beyond the bank itself and will cause serious political fall-out which, in turn, will have a negative impact on foreign investment in Croatia," said the letter. The investors believe that "eliminating 'Glumina' from the Croatian banking scene, particularly when most of bank's creditors and depositors are prepared to continue to support the bank, can cause an irrevocable and unnecessary damage". The letter also mentions "anonymous telephone calls, urging them not to invest". The investors said their analysis showed that Glumina Bank and the Glumina Group, through their activities in banking, leasing, agriculture, tourism, property development and industry, directly and indirectly account for a significant part of Croatian economy. The state sector owes Glumina Bank about US$57.4 million, the letter further said, adding many debtors were connected with the Croatian government as well. The investors expect the Croatian President to respond to their letter "as soon as possible to have an opportunity to further clarify their offer". According to Glumina Bank, Grandinvest Corporation is mentioned as investor in the bank's financial restructuring programme, which Glumina Bank submitted to the Croatian National Bank on July 21. The HNB advisory committee on September 18 refused to make a proposition to the Croatian government in view of restructuring Glumina Bank, claiming there was no economic justification to do so. (hina) ha jn 211843 MET sep 98