The discussion and the decision on economic feasibility of rehabilitation of Glumina Banka d.d. Zagreb was postponed until the September meeting of the CNB Council, because the analysis of comprehensive and complex bank's business and solvency records, as well as of the rehabilitation program submitted by Glumina Banka, including the supplements the CNB received in the meantime, could not have been, as expected, completed by the Wednesday meeting of the Council.

At this meeting, the Council of the CNB approved several take-overs of ownership stakes in Croatian banks exceeding 10 percent. Thus, the Council gave its approval to the European Bank for Reconstruction and Development and Austrian Kärntner Landes- und Hypothekenbank AG for taking over a stake in Slavonska Banka d.d. Osijek, to Privredna Banka d.d. Zagreb for a stake in Riadria Banka d.d. Rijeka and in Laguna Banka d.d. Porec.

Further, the Council of the CNB gave its approval for the founding and operation of Prva Stambena Stedionica d.d. Zagreb, as well as for the nomination of Ms. Nediljka Saric for Chairperson and Manda Zulic for Member of its Management Board. Additionally, the Council agreed on the founding and operation of Wüstenrot Stambena Stedionica d.d. Zagreb, as well as on the nomination of Mr. Anton Jandric for Chairman and Mr. Zdravko Andjel for Member of its Management Board. On the proposal of the Supervisory Board of Alpe Jadran Banka d.d. Split, the Council of the CNB approved the nominations of Mr. Mladen Gabric for the Chairman, and Mr. Tonci Koludrovic and Mr. Frane Galzina for Members of the Management Board of this bank. The Council also agreed on the nominations of Mr. Davor Relja for Chairman of the Management Board of Stedionica Gold d.o.o. Split, Mr. Tomislav Borkovic for Chairman of the Management Board of Slavonska Stedionica d.d. Zagreb, Mr. Veljko Bukarica for Chairman of the Management Board of Stedionica Zagisted d.d. Zagreb, as well as with the nomination of Mr. Alija Kadric for Member of the Management Board of Gospodarska stedionica Adriatic d.o.o. Vrbovec.

The Council of the CNB decided to take away from Ilirija Banka d.d Zagreb the licence for the performance of international payment and credit operations. International operations that the bank has already started will have to be completed within the period of three months after the decision of the Council has been delivered to bank's management. The Council based its decision on regulation stipulating that a bank may perform international operations if the mimimum amount of its equity capital is 18 million kuna and the amount of its guarantee capital is not lower than 54 million kuna. Since Ilirija Banka's capital fell significantly under the prescribed levels, and the bank failed to recapitalize in the legally determined period, the Council concluded that it no longer fulfills the conditions necessary for the performance of international operations. Thus, the bank will not be allowed to perform international operations even in the period until the Commercial Court decides about the proposal submitted by the Croatian National Bank, as creditor, to initiate bankruptcy proceedings for this bank.

The Council of the CNB also decided on changing the conditions under which banks may use daily liquidity credits. In the future, banks will be allowed to use these credits in the amount not exceeding 95 percent of the nominal value of subscribed NBC bills denominated in kuna and NBC bills denominated in foreign currency. The annual interest rate charged will be 7 percent, and the credit will have to be repaid until the final settlement of payment orders. So far, daily liquidity credits were granted up to the nominal amount of subscribed NBC bills denominated in kuna, and the annual interest rate charged was 17 percent. It was estimated that this change will significantly help banks in managing their intr-day liquidity.