Slovenian, Croatian Financial Experts Meet to Discuss LB Issue


Today's meeting will be their fourth in this capacity and comes exactly two months after Arhar and Rogić's last meeting in Bled, when the pair confirmed an agreement between Finance Minister Karl Erjavec and his Croatian counterpart Vesna Pusić that the LB issue should be tackled as a matter of succession to former Yugoslavia and not as a conventional bilateral issue.

They agreed that the two countries ask the Bank for International Settlements in Basel (BIS) for help in resolving the issue.

Slovenia however maintains that Croatia must first withdraw all lawsuits related to the matter currently running against Slovenia before its courts.

The LB issue stems from the early 1990s, when LB went bankrupt after the the breakup of former Yugoslavia. A number of Croatian clients of the bank lost over EUR 178m in savings.

Croatia argues that Slovenia should see to the debt because LB was a Slovenian bank, while Slovenia maintains that the savings deposits should be covered by Croatia in line with a territorial principle of bank guarantees applied to Yugoslavia's break-up.