Savings deposits in Dubrovacka banka are safe and depositors may continue to use them freely. Dubrovacka banka is of such high importance for the Croatian economy and for the financial system of the region in the south of Croatia, as well as for the Croatian financial system as a whole, that it cannot be left alone in such a situation, despite the fact that the majority of bank shares are privately owned. This conclusion was reached by the Council of the Croatian National Bank, chaired by governor dr. Marko Skreb, at its Wednesday meeting, attended also by Mr. Zlatko Matesa, president of the Government of the Republic of Croatia, Mr. Borislav Skegro, finance minister of the Republic of Croatia and Mr. Djuro Njavro, president of the Parliamentary Committee for Budget and Finances.
In order to further ensure the safety of savings deposits, the Council of the Croatian National Bank made the decision on the manner and conditions for granting bridging loans to the bank. These loans are to be used for the purpose of reducing liquidity problems of the bank. A special representative of the Croatian central bank, appointed by the Council at its Wednesday meeting, will be in charge of controlling the adequate use of these earmarked funds.
Dubrovacka banka shall produce and submit to the Croatian National Bank a bank rehabilitation and restructuring program within the period of 30 days. On the basis of this program and other relevant information such as the balance sheet data, the assessment of risk assets and their possible collection or write-off, the projection on successful continuation of bank operations, the Croatian National Bank will decide on further measures to be taken, and will recommend them to the Croatian government.
Currently, enhanced control is being conducted in the bank by the banking supervision authority, financial police and foreign exchange examiners. Their aim is to obtain a more detailed insight in data related to operations of Dubrovacka banka, as well as to identify those responsible for current difficulties of the bank.