The decision was taken in October 2010 at the time of negotiations on the free flow of capital and was followed by "a letter of the minister of finance at the time to the BIS". "We have no indication that this position has changed and we continue to encourage both sides to reach a mutually acceptable solution to this bilateral issue," the Commission said.

The statement comes after the Commission noted yesterday that it was aware of the latest development but said that the issue, concerning debt owed by the Zagreb subsidiary of the defunct LB bank to its Croatian clients, was a bilateral one and that the countries should look for a mutually acceptable solution. The position was met with discontent from the Slovenian side. Ambassador to the EU Rado Genorio told the cabinet of European Commission President Jose Manuel Barroso that Slovenia was "surprised" by the Commission's Thursday statement.

He stressed the statement was in contradiction with the Commission's official position, outlined in the regular annual report on Crotia's progress from October 2011 and the decisions of the General Affairs Council as well as of the European Council.