The Croatian government on Thursday accepted a bill on raising the protected principal deposits of every individual depositor from 400,000 kuna to the amount equivalent to 100,000 euros, in line with the European Union legislation.
"This increase is an additional protective measure for the saving of deposits of creditors and also contributes to the preservation of trust in the financial system and to greater stability on the financial market," Finance Minister Slavko Linic said.
The cabinet of Prime Minister Zoran Milanovic also proposes the removal of the existing provision in the relevant legislation under which means in the Deposit Protection Fund could consist of funds collected through borrowing from the Croatian National Bank.
This possibility should be removed as lending to the public sector by the central bank is banned, according to the Law on the Croatian National Bank and the treaty on functioning of the European Union, Linic recalled.
