At the Wednesday meeting, September 22, 1999 the Council of the Croatian National Bank, chaired by Governor dr. Marko Skreb, approved the bank's semi-annual report on economic and monetary developments which will be submitted to the Croatian Parliament, as well as the expectations and guidelines for monetary policy in the last quarter of this year. The Council emphasized that the stability of exchange rate and prices remains the basic monetary policy guideline and that monetary policy measures and instruments will be adapted to respond to the developments of major importance for the management of demand and supply of domestic and foreign currency.

Additionally, the CNB Council examined the reports on the situation in Agroobrtnicka banka d.d. Zagreb, Hrvatska gospodarska banka d.d. Zagreb and Promdei banka d.d. Zagreb produced by temporary administrators appointed to these banks, as well as the proposed solutions to the crisis in these banks. On the basis of available data on losses and disturbances in the operation of the aforementioned banks, it was concluded that there are no prospects for any of them to stabilize its operation without external help and to continue operating independently. Therefore, as in cases of other banks which encountered similar difficulties in their operation, the Croatian National Bank tried to stir up certain interest in bigger and more stable Croatian banks for a possible take-over of one of these problematic financial institutions. Since some of bigger Croatian banks signaled they might be interested in Hrvatska gospodarska banka and Agroobrtnicka banka, the CNB Council authorized the temporary administrators to examine more closely the possibilities of a take-over and inform the Council about the concrete results and justifiability of such expectations.

Since no financial institution expressed particular interest in taking over Promdei banka, and since it was established that its losses exceed the amount of guarantee capital by 98.7 million kuna and that most of its loans can be marked as connected lending, the CNB Council concluded that the only possible decision to be made here is the one proposing the initiation of bankruptcy proceedings over the bank. According to available data, the cost of Promdei bank's bankruptcy for the State Agency for Deposit Insurance and Bank Rehabilitation (related to insured deposits) would amount to about 8.5 million kuna.

At the Wednesday meeting the CNB Council approved several nominations for the chairmen and members of the management boards of a number of Croatian banks. Thus, the Council gave its approval for the nomination of Mr. Mladen Rakelic for chairman and Mr. Ante Blazevic for member of the management board of Zagrebacka banka - Pomorska banka Split d.d., for the nomination of Mr. Davor Holjevac for member of the management board of Privredna banka Zagreb, as well as for the nomination of Mr. Ivica Filipovic for chairman and Mr. Marijo Kirinic for member of the management board of Alpe-Jadran banka d.d. Split. The CNB Council further agreed with the nomination of Ms. Ivanka Milkovic for member of the management board of Kaptol banka d.d. Zagreb, Ms. Angelina Horvat for member of the management board of Slatinska banka d.d.d Slatina, Mr. Darko Medak for member of the management board of Splitska banka d.d.d Split and Ms. Sanja Martinko for member of the management board of Prva stambena stedionica d.d. Zagreb.