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Foreign injection in Centar bank welcome, says enterprise minister

Autor: half
ZAGREB, Aug 21 (Hina) - The arrival of the Czech J&T bank in Centar Banka is welcome because it will make the Croatian bank stronger in terms of assets, and this is not as in the 1990s, when the state sold bailed out banks cheaply, Entrepreneurship and Crafts Minister Gordan Maras said on Wednesday.

Asked to comment on media claims that as in the 199s, the state was selling to foreigners a bank bailed out with state money, Maras said the state and entrepreneurs were interested in the consolidation of the banking sector so that it could lend to businesses.

"A foreign investment of HRK 200 million in the Croatian banking system is good. Even after the state invested HRK 48.5 million in it, Centar Banka needed more capital, so there is no analogy to the previous privatisation of banks," Maras said.

Centar Banka's shareholders last week accepted J&T's HRK 75 million injection offer. J&T has said it is willing to invest another HRK 75 million in the bank.

Today's print media say J&T is paying HRK 10 per share in Centar Banka for which the Croatian state last year paid HRK 200.

The Czech bank is part of the J&T Group, a strong Central European investor.

(Hina) ha

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