Slovenia accuses Croatia of breaching 2013 bank deal

(LJUBLJANA) - Slovenia accused Croatia on Tuesday of breaching a deal on bank savings reached by the two governments last year as part of negotiations to clear the way for Zagreb's accession to the EU.

A Croatian court on Tuesday ruled in two cases demanding Slovenian Ljubljanska Banka (LB), and its successor Nova Ljubljanska Banka (NLB), repay over 27 million euros ($36 million) of bank savings deposited by Croatian citizens in LB before the collapse of former Yugoslavia in 1991.

"This is a clear violation of the memorandum (on bank savings)," Slovenia's foreign minister Karl Erjavec told journalists at a news conference.

He said the rulings "will have no repercussions for Slovenia since they breach Slovenian legislation". He added that Slovenia would appeal and consider other legal actions.

In the 1990s Croatia paid back savings to most Croatian account holders and authorised domestic banks to launch legal procedures against LB and NLB over those savings.

Tuesday's ruling sets a precedent for another 25 ongoing cases launched by Croatian banks demanding up to 270 million euros.

Slovenia claims Croatian companies owe 480 million euros to LB.

Amid threats that Slovenia would not ratify Croatia's accession to the European Union, Zagreb agreed in March last year to stop all court procedures against NLB and LB until the bank savings dispute was solved within the negotiations on the distribution of former Yugoslavia's wealth.