The Council of the Croatian National Bank chaired by Governor Rohatinski, Ph.D., met on Wednesday to discuss recent economic and monetary developments and enact several decisions for the implementation of the new Foreign Exchange Act.

Pursuant to the provisions of the new Foreign Exchange Act, the CNB Council enacted at this session the following decisions: a decision governing the conditions for and the manner of performing international payment transactions, a decision specifying the manner and the conditions under which residents may invest in foreign securities and stakes in foreign investment funds, a decision on the manner and the conditions under which non-residents may invest in domestic securities and stakes in domestic investment funds, a decision on the conditions under which non-residents may issue short-dated securities in the Republic of Croatia, a decision regulating payments and collections in foreign means of payment in the country and a decision on the manner and the conditions under which residents in business transactions with non-residents may receive payments or make payments in domestic cash, foreign cash and checks. A conclusion was made in connection with the adoption of these decisions that, within the framework of the central bank's legal authorities, a comprehensive analysis and a program should be made as soon as possible of further possible steps in the liberalisation of foreign exchange transactions in the context of the country's approximation to the European Union.

Approval was also granted at this CNB Council session to Steiermärkische Bank und Sparkassen AG Graz for the acquisition of over 33% voting shares in Erste & Steiermärkische Bank d.d. Rijeka, that will result in an almost equal equity stake of this bank to the stake held in the same bank by Erste Bank der österreichischen Sparkassen AG, Wien. Strahinjčica d.d., a company from Krapina, was given a prior approval for the acquisition of over 33% voting shares in Samoborska banka d.d. Samobor, for the purpose of its merging with Zagorska banka d.d. Krapina, which is in majority ownership of the said company.

The CNB Council endorsed the proposals of relevant supervisory boards' for the following appointments: Damir Odak as President of the Management Board of Nova Banka d.d. Zagreb, Igor Kodžoman as Management Board Member of Hypo Alpe-Adria Bank d.d., Tea Martinčić as Management Board Member of Zagrebačka banka d.d. Zagreb, and Franjo Franjić as Management Board Member of Raiffeisen stambena štedionica d.d. Zagreb.

The CNB Council rated as the best the offer submitted by Deloitte & Touche for the audit of this year's financial reports of the Croatian National Bank, and decided to suggest the selection of this audit firm to the Finances and State Budget Committee of the Croatian Parliament.