"Aside from the fact that it's about aligning with European legislation, this law is a clear message that the bailout of credit institutions will no longer burden the state budget, i.e. taxpayers, but owners, shareholders and creditors," said Finance Minister Boris Lalovac.
Between 1995 and 2000, HRK 18 billion was set aside in the state budget to rehabilitate six commercial banks, he said. Between HRK 7-8 billion was earned back through asset sales, so that taxpayers paid about HRK 10 billion for the net bailout.
Since 2000, when the bailout law was repealed and the State Agency for Deposit Insurance and Bank Rehabilitation (DAB) was established, about 200,000 bank clients were reimbursed with about HRK 5 billion, Lalovac said.
Under the government-sponsored bill, the Croatian National Bank is authorised for the bailout of credit institutions and the Croatian Financial Services Supervisory Agency (HANFA) for investment societies and financial institutions within DAB's remit.
Bailout is envisaged only for an institution for which it has been established that it is folding or is likely to fold, for which all other relevant rescue measures have not been enough, and if it has been estimated that the bailout is in the public interest. A special fund managed by DAB will be set up to finance the bailout.
(EUR 1 = HRK 7.6)
(Hina) ha