CENTRAL BANK ISSUES STATEMENT ON PRIVREDNA BANKA REHABILITATION

ZAGREB, Dec 5 (Hina) - The rehabilitation and restructuring of Privredna Banka Zagreb will complete a programme for recovery of the Croatian banking system and create conditions for its effective operation, the central bank said on Thursday. The statement from the National Bank of Croatia followed a government decision to rehabilitate one of the country's leading banks. The financial restructuring of Slavonska, Rijecka and Splitska banks has already been completed. During the rehabilitation process, the state plans to clear most of the bank's bad debts, inject fresh capital and become its majority owner. The statement stressed that savings deposits as well as all other deposits were "completely safe", adding that a successful rehabilitation was expected to strengthen the confidence of its depositors. (hina) vm jn 051607 MET dec 96