HOUSE OF COUNTIES ON FUND FOR RESTITUTION OF SEIZED PROPERTY

ZAGREB, Jan 16 (Hina) - The House of Counties on Thursday discussed a bill on establishing a fund for the restitution of property seized during the Yugoslav Communist rule. "The Bill is a necessary adjunct for the implementation of the Restitution of Seized Property Act, which came into force on January 1, 1997," Justice Ministry secretary Snjezana Bagic said presenting the Bill. Under the Restitution of Seizet Property Act, restitution is be effected in cash, bonds or shares. The original property in its physical form is to be resituted only in special cases. The obligation to pay compensation in shares and stakes lies with the Croatian Privatisation Fund, while a special Restitution Fund is to be set up to pay compensations in cash and bonds. The Restitution Fund would pay compensations mostly in the form of Governmetn bonds; funds for that purpose would be secured from the national budged and from the sale of nationalised assets, such as flats, Bagic said. The House also passed a Bill of Amendments to the Insurance Act, which introduces a higher degree of state supervision over insurance companies and thereby a "higher standard of protection of insurees," according to Deputy Finance Minister Mijo Jukic. (hina) jn as 161616 MET jan 97