DEPOSITORS IN LJUBLJANSKA BANK OPPOSE ARBITRATION ON THEIR SAVINGS

ZAGREB, Nov 13 (Hina) - A representative of damaged depositors of Slovenia's Ljubljanska bank on Friday said the bank's debts to Croatian depositors cannot be solved through international arbitration, but directly between depositors and Slovenia. The amount in question is approximately DEM 309 million, which Slovenia included in its international arbitration proposal, said Bozidar Vukasovic. Ljubljanska bank in 1990 blocked the savings of 140,000 Croatian depositors. Some depositors transferred their rights, worth some DEM 600 million, to the Croatian government. This is part of Croatia's current public debt. Other depositors opted to fight for their money on Ljubljanska bank accounts through private claims. "The Croatian government cannot negotiate on the bank's private debts to its clients," Vukasovic said, adding this was also the stand of the Croatian government. Slovene Premier Janez Drnovsek said in Ljubljana on November 9 that the International Monetary Fund (IMF) had agreed to arbitrate in the Croatian-Slovene dispute over the Ljubljanska bank debt. Commenting on the statement, Croatian Economy Minister Nenad Porges said the following day that both sides must agree to arbitration, and that in this instance Croatia's consent was more important than IMF's. Even though neither the Croatian government, nor the Croatian Foreign Ministry or Finance Ministry were available for comment on the matter, both ministries unofficially confirmed that the government cannot negotiate on private claims of Croatian depositors, but only with regard to claims taken over by the government, which amount to DEM 600 million. (hina) ha jn