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Politics
31.07.2010 00:30
CROATIA, PRIME MINISTER, VISIT
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Slovenian, Croatian PMs Meet to Resolve LB Debt Issue

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Prime Minister Borut Pahor (right) and Croatia's Jadranka Kosor meet to tackle the last major outstanding issue in bilateral relations.
File photo.

Bohinj, 31 July (STA) - The Slovenian and Croatian prime ministers, Borut Pahor and Jadranka Kosor, will meet in Bohinj on Saturday in a bid to come up with a solution for the last major outstanding issue in bilateral relations, the debt of Slovenia's LB bank to Croatian savers.

It is unclear what the solution might be, but Slovenia's position has been that this is an issue stemming from succession to the former Yugoslavia.

One option would be a return to the negotiating table by all five successor states under the auspices of the Basel Bank for International Settlements (BIS).

Another solution mentioned by Slovenia would be for Croatian companies to settle their debt to LB, with the bank then using the money to repay the savers.

Some 132,000 Croatian savers claim over EUR 178m from the bank including interest, whereas Croatian firms are estimated to owe the bank to the tune of EUR 800m including interest.

sm/vr/ep/mas
31.07.2010 00:30

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