Ljubljanska banka issue

Year-long suspension requested for LB lawsuit

05.04.2013 u 13:30

Bionic
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At a hearing on Friday in the suit against the now defunct Ljubljanska Banka and Nova Ljubljanska Banka over transferred savings of Croatian clients, the legal representative for Privredna Banka Zagreb proposed a year-long suspension of the proceedings in an attempt to peacefully resolve the dispute in accordance with an agreement between the governments of Croatia and Slovenia.

This was actually announced yesterday by Croatian Prime Minister Vesna Pusic who said that the Croatian side had done everything to have the proceedings suspended and that the Slovenian side was discussing this with representatives of the old and the new Ljubljanska Banka, adding that she expected both sides to request that the proceedings be suspended at the hearing on Friday.

On 11 March, the prime ministers of Croatia and Slovenia, Zoran Milanovic and Janez Jansa, signed a Memorandum of Understanding between the two governments to resolve the Ljubljanska Banka issue within negotiations on succession to the former Yugoslavia, while the Slovenian parliament would immediately initiate ratification of Croatia's European Union accession treaty.

The document says that efforts will be made to find a comprehensive solution as soon as possible to the issue of Yugoslav-era foreign-currency deposits of Croatian clients with the Zagreb branch of the now defunct Slovenian bank. Active negotiations to that effect will continue at the Bank for International Settlements in Basel in line with the succession treaty.

Under the memorandum, the Croatian government is to ensure that the lawsuits filed by Croatian banks are put on hold and no new legal or other proceedings are taken with regard to the issue of transferred foreign-currency savings deposits, while Slovenia undertakes to initiate a procedure in its parliament to ratify Croatia's EU accession treaty. The Slovenian parliament ratified the Croatian treaty on Tuesday.

After Privredna Banka representative Maja Spoljaric asked for a year-long suspension, legal representatives of Ljubljanska Banka and Nova Ljubljanska Banka asked for 30 days to voice their opinion about the proposal.

Today's hearing was scheduled last year.