The President of the Bavarian Government, Edmund Stoiber, reflected on Sunday in Split on the unsuccessful first attempt by Bayerische Landesbank to take over Hypo Alpe-Adria Bank d.d., emphasizing that this case could unnecessarily disrupt the good relations between the two countries, while also expressing optimism that BLB will indeed take over Hypo bank, as he stated he received announcements that negotiations on this matter will continue next month.
Stoiber noted that the banking situation in Bavaria is different from that in Croatia and that the Bavarian government holds half of the ownership in Bayerische Landesbank. He expressed disappointment that the Croatian National Bank (HNB) prevented the Bavarians from taking over Hypo Bank in Croatia and emphasized that this case could unnecessarily disrupt the good relations between the two countries. However, Stoiber said he is still optimistic regarding the takeover of the Croatian Alpe Adria bank, as he received announcements that negotiations on this matter will continue. “I am confident that HNB will lift its veto on our takeover of Hypo Alpe Adria bank in Croatia and that negotiations will continue next month,” said Stoiber.
The Governor of the Croatian National Bank (HNB), Ċ½eljko Rohatinski, made a decision on July 11 to deny Bayerische Landesbank (BLB) consent to acquire a majority ownership stake in Hypo Alpe-Adria Bank d.d. as well as Slavonska banka d.d. Osijek due to BLB’s previous operations in Croatia as the former majority owner of Rijeka Bank.
Prime Minister Sanader stated that the situation for the Croatian Prime Minister is completely different because our Government does not have the authority to interfere in the operations of HNB.
Subsequently, on July 17, a meeting was held with representatives of BLB’s Management Board led by CEO Werner Schmidt at HNB. During this meeting, Governor Rohatinski set four conditions that BLB must meet if it wishes to reapply for HNB’s consent to take over Hypo and Slavonska banks. As Rohatinski later announced to the media, the conditions were as follows: first, a public apology to depositors for BLB’s behavior in the case of Rijeka Bank, then the engagement of an external auditor agreed upon by HNB who will conduct a detailed due diligence. Another condition is that the bank identifies risks in its operations, dynamically assesses potential losses, and conducts an initial recapitalization of Hypo bank for at least the amount of identified potential losses. The last condition is a change in the banks’ business policy, which includes additional permanent recapitalization of the bank that will return the adequacy ratio to the level from mid-2005, as well as restrictions on granting large mortgage loans to the private sector, reducing the openness of the currency position, and promptly implementing HNB’s guidelines for preventing money laundering.
BLB has, as reported by the media, expressed its readiness to fulfill all guarantees and conditions set by HNB in its new request. HNB is expected to discuss this new request at the first autumn session of the Council. After Stoiber’s self-initiated reflection on the case of the takeover of Hypo bank d.d. by BLB, journalists also asked the Croatian Prime Minister for a comment. Prime Minister Sanader stated that the situation for the Croatian Prime Minister is completely different because our Government does not have the authority to interfere in the operations of HNB. (Hina)
