At its meeting held on Monday, August 23, 1999, the Council of the Croatian National Bank decided to extend the mandate of the temporary administrator in Croatia banka d.d., Adolf Matejka, to one more month, i.e., to September 25 this year.
This decision was made since the period for which the temporary administrator was formerly appointed has expired, and the Government of the Republic of Croatia has not yet reached the final decision on the CNB Council proposal, made on June 16, 1999, to implement a rehabilitation procedure in the aforementioned bank.
The temporary administrator was appointed to Croatia banka d.d. on February 23 this year for the period of six months, which terminated all authorities of the bank's management, supervisory board and general assembly due to irregularities in the bank's operations. After the appointment of the temporary administrator, the regular operations continued, including a free disposal of household savings deposits. On June 16, 1999, the CNB Council reviewed the report of the temporary administrator in Croatia banka d.d. on the assessed situation in the bank and possibilities for the future stable and profitable operations, and proposed the implementation of the rehabilitation procedure to the Government of the Republic of Croatia. This proposal was based on the assessment that the basis for more sound and stable future operations could be provided by rationalising expenses, improving concern over collection of receivables and placement riskiness, by recruiting more skilled personnel, as well as by a possible merger with another financial institution.