ZAGREB, Dec 3 (Hina) - A final bill on banks, which was discussed by +the Croatian parliament on Thursday, was endorsed by the bench of +the governing Croatian Democratic Union (HDZ), but met with +numerous objections from opposition
benches.+ Most opposition parties remarked about the haste in passing a new +law on banks, announcing they would not endorse it in its proposed +form. It was an illusion to believe a new law would resolve the +bundle of problems in the Croatian banking system, the opposition +stated.+ The bill was in its third reading. Some 80 amendments were +submitted.+ The Croatian Peasants' Party (HSS) suggested a delay in passing the +law, and requested a report on the situation in the banking system +and in the financial restructuring of banks.+ The causes for the current situation in banking lay in the +overwhelming influence politics had on the banking system and in +th
ZAGREB, Dec 3 (Hina) - A final bill on banks, which was discussed by
the Croatian parliament on Thursday, was endorsed by the bench of
the governing Croatian Democratic Union (HDZ), but met with
numerous objections from opposition benches.
Most opposition parties remarked about the haste in passing a new
law on banks, announcing they would not endorse it in its proposed
form. It was an illusion to believe a new law would resolve the
bundle of problems in the Croatian banking system, the opposition
stated.
The bill was in its third reading. Some 80 amendments were
submitted.
The Croatian Peasants' Party (HSS) suggested a delay in passing the
law, and requested a report on the situation in the banking system
and in the financial restructuring of banks.
The causes for the current situation in banking lay in the
overwhelming influence politics had on the banking system and in
the "privatisation wheeling and dealing through state-owned
banks", the HSS believed.
The Social Democratic Party (SDP) bench believed the state of
banking was "just a consequence of what the government and the
Croatian National Bank (HNB) have consciously allowed - for banks
to be more involved in privatisation than in banking and financial
activities."
The SDP assessed the bill on banks was in a certain sense a "report
on temporary measures or a rehabilitative law."
The Croatian Social Liberal Party (HSLS) bench believed valid laws
enabled the HNB to act in time and were not the cause of the
disastrous situation in banking.
The Istrian Democratic Assembly (IDS) said the HNB's role should be
more pronounced, adding the central bank should not arbitrate in
each case, "but monitor those ... who have turned banks into
supermarkets for tycoons."
According to Assistant Finance Minister Ivan Vrljic, the current
state of the banking system was the result of the banks' credit
exposure to companies with shared interests, companies which are
also bank owners.
Vrljic pointed out however, that the new law on banks contained
regulations on interest-related legal entities and exposure
through which extant problems might be resolved.
The Liberal Party (LS) bench criticised the composition of the
Banks Coordinating Committee, claiming this illegal state body
with wide-reaching jurisdiction was above the HNB. Where was the
parliament here, wondered the LS.
For the Croatian People's Party (HNS), the said Committee was
further proof that "in this country, it is not the (HNB) governor
and the HNB deciding on monetary policy, but somebody else."
For the ruling HDZ, the bill on banks was after the transparency of
bank business, responsible performance of bankers and banks, and
expertise affirmation.
The HDZ said it was necessary to pass a better legislative framework
ensuring further development of the banking system and the
protection of the citizens' savings deposits and their trust in
banks.
The ruling party's bench also advocated stricter measures in bank
reviews.
(hina) ha jn