Members of the CNB Council place their mandates at the disposal of the Croatian Parliament

Published: 26/4/2000

At its meeting held on Wednesday April 26, 2000 members of the Council of the Croatian National Bank decided to place their mandates at the disposal of the Croatian Parliament. The CNB Council made the decision unanimously (in the absence of one Council member), after it had examined the parliamentary debate and the conclusions reached by the Parliament related to central bank's financial reports and plans. At the session held last week, namely, the Parliament refused to endorse central bank's reports for 1998 and the first half of 1999, as well as financial plans for 1999 and 2000. By doing this, the Parliament actually withheld its support to the highest body of the central bank, which had previously approved these documents.

Taking into consideration the importance of a high level of credibility, stabilizing impact and continuity in the performance of central bank's tasks, which are set forth by the Constitution, the CNB Council assessed that the decision to place the mandates of its members at the disposal of the Parliament, which is authorized for appointing and relieving members of the CNB Council and the highest central bank officials, will contribute adequately to the resolution of the current situation in the shortest possible period, that is, with minimal unwanted consequences for macroeconomic stability, confidence in the domestic banking system and position of Croatia on international financial markets. The CNB Council is appealing to all those that will be involved in making further decisions related to the central bank and the banking system to keep these goals in mind.

Precisely due to these reasons, the CNB Council concluded that its members, as well as all employees of the central bank, should continue to perform their duties with the highest possible responsibility and dedication until the Croatian Parliament decides on the issue. Thus, at the meeting held on Wednesday, the CNB Council made several decisions acting in accordance with its authority.

German Bayerische Landesbank was given approval for acquiring 59.9 percent of voting shares in Rijecka banka d.d. Rijeka, and Italian bank UniCredito Italiano received approval for acquiring 62.6 percent of voting shares in Splitska banka d.d. Split. In addition, the CNB Council gave its approval to Zagrebacka banka d.d. Zagreb for purchasing 70 percent of voting shares in Varazdinska banka d.d. Varazdin - there were no obstacles to reaching such a decision, especially after the management board and supervisory board of Varazdinska banka had expressed a preference for Zagrebacka banka and, consequently, Raiffeisen Zentralbank Österreich AG gave up bidding for Varazdinska banka and withdraw its request for central bank's approval of the transaction.