Center bank goes bankrupt, which could have been avoided if there were more willingness of owners and management to attempt to merge with other smaller banks , and later the seriousness of investors in an attempt of recapitalization , evaluated at the Ministry of Finance.
The Ministry stated that the State Agency for Bank Rehabilitation and Deposit Insurance (DAB ) will pay all obligations to depositors of Center bank that are insured , and it is a sum of about 500 million kuna. They note that there should be no problems with the payment of insured deposits.
Depositors from the public sector , according to the findings of the Ministry of Finance , managed to pull most of the deposit, but a small part remained .
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The Ministry reminded of trying to recapitalization of banks through Center Fund for Economic Co-operation ( FGS ), but the previous government dropped this proposal at the last session . The current government , says a source from the Ministry of Finance , however, accepted the engagement FGS , although such funds are considered in the Ministry , should not participate in the rehabilitation of the financial sector .
The Ministry also initiated gathering of small banks around the Croatia Bank and the creation of larger banks. The goal of the state was not achieving a majority stake than consolidation and risk avoidance and prevention of collapse of small banks, especially as the previously crashed Credo banka and the end of another entered uncertainty in the financial sector. According to the ideas of the Ministry of Finance , in addition to Central Bank, and in the consolidation were to enter VABA Bank , Karlovac Bank, Coin Bank , Nava Bank and United Bank .
However , this attempt failed because the of the owners of banks were not prepared to accept the inevitable reduction of its capital.
