ZAGREB, March 20 (Hina) - The Croatian government will on Thursday again become the majority owner of Rijecka Banka when it should make an official decision to take over the majority set of shares from Bayerische Landesbank. The
government would thus own about 85 percent of the bank's shares.
ZAGREB, March 20 (Hina) - The Croatian government will on Thursday
again become the majority owner of Rijecka Banka when it should make
an official decision to take over the majority set of shares from
Bayerische Landesbank. The government would thus own about 85
percent of the bank's shares. #L#
Vice-Premier Slavko Linic said on Wednesday that the move would
create conditions for all transactions with the bank's shares with
a strategic partner to be completed within ten days.
This was agreed by the government and the Bayerische Landesbank at
the beginning of this week, when representatives of the German bank
decided to offer their 59.9 percent of Rijecka Banka's shares to the
government at a symbolic price of one dollar. The state has
committed itself to financially rehabilitate the bank.
A new strategic partner will be sought. There has been some
information that six investors are interested in Rijecka Banka.
Since the middle of last week, Rijecka Banka has entered a crisis
upon the discovery of foul dealings in the bank's foreign exchange
sector. The bank's chief stockjobber, Eduardo Nodilo, was arrested
in connection to the dealings.
Since then, the bank has been swamped by citizens withdrawing their
deposits. During the first several days, the bank was able to pay
back the deposits, but lately, the Croatian National Bank has had to
intervene.
According to announcements, the government should decide to give
the central bank state guarantees for the payment of a short-term
loan for Rijecka Banka's liquidity. The guarantee would be provided
for a loan of 863.7 million kuna with maturity being September 19.
This would secure the bank's liquidity and secure funds for its
daily transactions.
(hina) lml sb