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EBRD and Bank Austria invest in Croatia
The European Bank for Reconstruction and Development (EBRD) is investing US$ 4 million (ECU 3.2 million), in a fully operational bank subsidiary to be established in Croatia by Bank Austria AG. This represents a 20 per cent equity participation.
"By investing in Bank Austria Croatia d.d., the EBRD will achieve two of its priorities in Croatia. First, it will broaden the scope of banking services to better serve the growing financing needs of clients and consequently will enhance competition in the Croatian banking market. Second, it will facilitate the flow of capital to the corporate and retail sectors," said Kurt Geiger, Co-Director of the EBRD's Financial Institutions team.
Bank Austria Croatia d.d. (BAC) will commence with 40 employees and operate as a universal bank. It will provide corporate customer business and retail banking in both kuna and foreign currency. Services will include account maintenance, payment transactions, deposit taking, loans to corporate customers and private individuals, project and export financing, credit card business and exchange offices in selected tourist areas. BAC will increase the range of products available to private sector clients in Croatia during a period of privatisation, restructuring and development in the country.
BAC received a full banking licence and an unrestricted foreign exchange trading permit in July 1996 from the Croatian National Bank, and operations will commence in the first quarter of 1997.
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