Ex-central bank governor in trouble in Agrobanka case?

BELGRADE The Serbian central bank "ignored a police request" submitted one year ago, asking to see a report on extraordinary control of Agrobanka's business. This is according to the Belgrade-based tabloid Press, which also notes that the National Bank of Serbia was at the time headed by Dejan Soskic. Ex-central bank governor in trouble in Agrobanka case? The article quotes a source from Serbia's MUP who said the police filed it request on September 23, 2011, bu that they were told in a telephone conversation that the bank "could do nothing about it", since the report was "an official secret". "Clearly they failed to understand how serious the situation was, so they completely ignored the request," the Interior Ministry (MUP) source was quoted as saying, and adding: "However, when the criminal investigations police asked them to explain in writing why they had failed to submit the documentation, and what made it an official secret, the NBS started to cooperate and sent the requested documentation on October 7." According to the report, suspicion was raised that Agrobanka was encountering problems after the police investigated the now defunct Metals Banka (bank), whose license was revoked. They at the time found out that the bank had its loans "refreshed" by those of Agrobanka. "Big borrowers who were no longer able to repay their loans to Metals Banka agreed with its management to receive money from Agrobanka, although they had no collateral to offer, and were already head over heels in debt. Based on this, the criminal investigations police asked for the NBS report on Agrobanka in September 2011, while the MUP sent all the information it had to the Special Prosecution in February," the police source stated, according to Press. Although Dejan Soskic recently said that he never received any police requests related to Agrobanka - "former members of the NBS Council are saying that only Soskic and his vice-governor in charge of control of banks Mira Eric could have known about it", writes the daily. New NBS Governor Jorgovaka Tabakovic said in a statement that she would "investigate whether the central bank refused to submit the report to the police while Dejan Sosic was at its helm": "Since I am not acquainted with that information, I will check as soon as today if and in what form the request arrived." Tabakovic also noted that "the authorities will determine whether there were oversights at the central bank". "We are all suffering damages, and we will find out who benefited. It's important that no 'lack of evidence' happens here, and that we do not pass judgment before the institutions that are tasked with doing it," the governor noted. The Organized Crime Prosecution on August 10 launched an investigation against former Agrobanka Executive Board Chairman Dusan Antonic and nine others, suspecting that they incurred damages to the bank by approving illegal loans. Antonic and his son are among those who were arrested last week and placed in 30-day custody. In May of this year, the NBS revoked Agrobanka's license when it was discovered the bank was EUR 300 million in the red. The bank's obligations and deposits were taken over by Nova Agrobanka, founded by the government of Serbia. Dejan Soskic (Beta, file) B92 Vecernje novosti Press

Ex-central bank governor in trouble in Agrobanka case?

The article quotes a source from Serbia's MUP who said the police filed it request on September 23, 2011, bu that they were told in a telephone conversation that the bank "could do nothing about it", since the report was "an official secret".

"Clearly they failed to understand how serious the situation was, so they completely ignored the request," the Interior Ministry (MUP) source was quoted as saying, and adding:

"However, when the criminal investigations police asked them to explain in writing why they had failed to submit the documentation, and what made it an official secret, the NBS started to cooperate and sent the requested documentation on October 7."

According to the report, suspicion was raised that Agrobanka was encountering problems after the police investigated the now defunct Metals Banka (bank), whose license was revoked. They at the time found out that the bank had its loans "refreshed" by those of Agrobanka.

"Big borrowers who were no longer able to repay their loans to Metals Banka agreed with its management to receive money from Agrobanka, although they had no collateral to offer, and were already head over heels in debt. Based on this, the criminal investigations police asked for the NBS report on Agrobanka in September 2011, while the MUP sent all the information it had to the Special Prosecution in February," the police source stated, according to Press.

Although Dejan Šoškić recently said that he never received any police requests related to Agrobanka - "former members of the NBS Council are saying that only Šoškić and his vice-governor in charge of control of banks Mira Erić could have known about it", writes the daily.

New NBS Governor Jorgovaka Tabaković said in a statement that she would "investigate whether the central bank refused to submit the report to the police while Dejan Šošić was at its helm":

"Since I am not acquainted with that information, I will check as soon as today if and in what form the request arrived."

Tabaković also noted that "the authorities will determine whether there were oversights at the central bank".

"We are all suffering damages, and we will find out who benefited. It's important that no 'lack of evidence' happens here, and that we do not pass judgment before the institutions that are tasked with doing it," the governor noted.

The Organized Crime Prosecution on August 10 launched an investigation against former Agrobanka Executive Board Chairman Dušan Antonić and nine others, suspecting that they incurred damages to the bank by approving illegal loans. Antonić and his son are among those who were arrested last week and placed in 30-day custody.

In May of this year, the NBS revoked Agrobanka's license when it was discovered the bank was EUR 300 million in the red. The bank's obligations and deposits were taken over by Nova Agrobanka, founded by the government of Serbia.