Pursuant to Article 265, paragraph (1) and Article 267, paragraph (1) of the Credit Institutions Act (Official Gazette 159/2013) and Article 42, paragraph (3), item (9) of the Croatian National Bank Act (Official Gazette 75/08 and 54/13), the Council of the Croatian National Bank decided at 5:15pm today, 16 July 2014, to submit a request to the Commercial Court in Zagreb to open bankruptcy proceedings against Nava banka d.d., Zagreb, Tratinska 27.

The Croatian National Bank, within its supervisory powers, has estimated for Nava banka the existence of the grounds for bankruptcy referred to in Article 266, items (3), (4) and (5) of the Credit Institutions Act.

Pursuant to Article 267 of the Credit Institutions Act, the above decision shall have the following effects:

1) temporary restriction of executions of orders for forced collection of payments debited to the credit institution's account in accordance with the law governing the execution of cash assets;

2) temporary restriction of credit institution's payments from all its accounts;

3) temporary restriction of credit institution's payments and transfers from the accounts of its clients;

4) temporary restriction of credit institution's provision of payment services via payment cards and

5) temporary restriction of all payments to the accounts of the credit institution and the accounts of its clients.

The Croatian National Bank has notified the Financial Agency and Nava banka d.d. Zagreb about the adoption of the CNB Council's Decision on the submission of the request to open bankruptcy proceedings.