The Slovenia Times

Public call to savers to verify claims to LB


The public call was published in Croatian dailies Večernji list as well as Sarajevo-based Oslobođenje, Banja Luka-based Nezavisne novine and the Mostar edition of Večernji list.

Savers with claims to former subsidiaries of the defunct Yugoslav-era bank in Zagreb and Sarajevo will be able to file applications between 1 December 2015 and 31 December 2017.

Beneficiaries will receive a preliminary calculation of their compensation within three months after the ministry receives their applications.

Compensation will be paid within 30 days following the preliminary calculations if they are not challenged.

However, deciding related to applications for verification of claims to the Sarajevo subsidiary will be put off until Slovenia gets full bank data, which is in line with the relevant law.

Slovenia passed the law earlier this year creating a scheme to compensate the holders of foreign currency deposits with the Zagreb and Sarajevo branches of LB bank who have not yet been able to recover their savings.

The scheme is based on the July 2014 ruling of the European Court of Human Rights and has been cleared by the Council of Europe.

The number of savers in Croatia and Bosnia-Herzegovina to be compensated by Slovenia has been estimated at around 230,000. The government has estimated that a total of 385 million euros will be needed for the scheme to be covered.

First one-off payments are expected to be carried out in the first quarter of next year.

The public call was already published on Friday in the National Gazette and the websites of the Finance Ministry and the Succession Fund.

Milivoje Žugić, a counsel for many Croatian clients of the LB bank, responded to the call in Zagreb by saying the offer for payment was mere compensation rather than repayment of all savings with interest.

He complained that the scheme envisages simple interest on the principal as at 31 December 1991 instead of compound interest which is more common for savings schemes.

"In this way the savers will only be repaid 48% of the money they are entitled to from the principal and default interest," Žugić commented for the Croatian public radio.

The Zagreb-based lawyer had told an interview with the STA in May that Slovenia set the late payment interest from the beginning of 1993 to the end of 2015 at 1.79%, which was substantially below the late payment interest in Croatia at around 14%.


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