FOREIGN CORPORATION SOUGHT STATE COLLATERAL - FINANCE REP

( Editorial: --> 3046 ) ZAGREB, Sept 25 (Hina) - A Croatian Finance Ministry representative on Friday refuted claims that representatives of Grandinvest Corporation had been given firm assurances that the Ministry would support the group in its plan to invest in Glumina Bank. The claim, made by Grandinvest representative Marvin Markowitz in a letter addressed to several Croatian government institutions, is "completely unfounded", Assistant Finance Minister Hrvoje Radovanic said. He said the claim was "in harsh contrast with what has been said at the meeting", and "uncovers the frivolity and scheming character of those who have uttered it". During a conference which took place at their request at the Finance Ministry on September 3, Markowitz and David Feldman, another Grandinvest representative, were interested in the possibility of the Ministry granting US$50 million in collateral to the corporation. Based on the collateral, Grandinvest would claim a loan with a foreign bank towards financially restructuring Glumina Bank, said Radovanic. Radovanic said he clearly told the two representatives there was no possibility of granting that collateral, due to it not only being a "crazy concept by which Croatian taxpayers would guarantee regular payments for a loan which a foreign investor would use to take over Glumina Bank, but also (because) legal provisions regulate that state collaterals may be granted solely for credit commitments of corporate bodies in majority state ownership". (hina) ha jn/mbr 251541 MET sep 98