In the announced new wave of privatization, HPB could also be resolved. EBRD would enter the bank as a venture capital fund, and its exit is conditioned by the privatization of HPB. However, the main problem is the price.
The only remaining (large) bank in Croatian ownership HPB necessarily needs fresh capital not only to maintain the required capital adequacy but also to finance normal operations. Due to huge provisions for bad loans and financial obligations left by the former management, neither the bank nor the owner has a strong negotiating position with potential investors.
