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Pusic confirms Croatia owes money to Swiss bank

Author: rmli
ZADAR, Oct 19 (Hina) - After Switzerland's biggest bank, USB, on Friday sued Croatia with a federal court in New York over a US$45 million Yugoslav-era debt, Croatian Foreign and European Affairs Minister Vesna Pusic confirmed on Sunday morning that Croatia did owe the amount in question and that all the other former Yugoslav republics had settled their debts to USB.

"I have checked, the talks (on the debt) lasted quite some time, an agreement was reached in 2008 and it should have been realised in the meantime. It was not realised and it is one of those 'skeletons in the closet'. The Finance Ministry will have to find a solution," Pusic said during a visit to the coastal city of Zadar, confirming that the other former Yugoslav republics had paid their share of the debt to UBS.

Asked about a budget revision, Pusic said the health reform was the biggest problem.

"It consumes most of the state budget and it is an area where a major change has to be made if we are to function normally," Pusic said.

Asked if she supported the exit of the national health insurance agency (HZZO) from the state treasury, Pusic said it should happen when the economy was growing, not when it was stagnating.

"I don't think that public finances should be jeopardised, we should wait for a little while."

(Hina) rml

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