At its meeting held on Friday, April 7 2000, the Council of the Croatian National Bank, chaired by Governor dr. Marko Škreb, examined the effect of recent decisions made by the Croatian Government related to the issue of replacement bonds earmarked for the restructuring of economy to banks which had been put under temporary administration late in March on the basis of available indicators of their financial performance and pursuant to relevant regulation.
The decision of the CNB Council to appoint a temporary administrator to Istarska banka d.d. Pula was based on the fact that, as revealed by CNB's on-site control, at the end of September potential losses of the bank exceeded the amount of its guarantee capital for about 44.4 million kuna. Due to extraordinary receipts in the amount of 57.53 million kuna arrising from the issue of the aforementioned bonds, the guarantee capital of the bank (on March 30, 2000) ceased to be negative and amounted to 6.35 million kuna. Since preconditions for keeping Istarska banka under temporary administration no longer exist, the CNB Council decided to recall the temporary administrator.
Further, the CNB Council provided the Commercial Court in Rijeka with approval to appoint Mr. Milenko Vidulin for chairman and Mr. Antun Šuran for member of the management board of Istarska banka pursuant to Article 245 of the Company Law.
Since the effect of the replacement bonds on indicators of financial performance of Cibalae banka d.d. Vinkovci is minimal and is not changing significantly any of these indicators, the CNB Council found no justification for recalling the temporary administrator appointed to this bank.