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SARAJEVO, Oct 24 (Hina) - The director of Hipo Banka of Zenica,
central Bosnia, has been arrested after he attempted to embezzle a
loan granted by three Croatian banks for economic recovery,
Sarajevo newspapers said on Friday.
Director Smail Zubcevic took over a total of DM 6.5 million in loans
granted by Glumina Banka of Zagreb, Istarska Banka of Pula and
Pomorska Banka of Split and attempted to buy in his name shares of
Hipo Banka for about DM 1.2 million, Zenica Canton Interior
Minister Semsudin Mehmedovic was quoted by Sarajevo newspapers as
saying.
Zubcevic also tried to use DM 274,000 for the repayment of his
personal loans with Hipo Banka.
This was the first publicly exposed financial scandal in Bosnia-
Herzegovina, and journalists were told that its exposure was a
result of a coordinated action by local police and the Bosnian
Federation Banking Agency.
(hina) vm jn
241435 MET oct 97
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