Croatia invited all bidders interested in acquiring state-owned bank Hrvatska Postanska Banka (HPB) to submit their expressions of interest by August 31. They will then be asked to submit their non-binding proposals on or before September 20. HPB, which is the last local bank owned by the state, is estimated to have a 4.5% control of the market. HPB offers savings products, cards, and loans to individuals and businesses. In a statement, the finance ministry said that the Croatian government will be offering 99.13% of the stock it owns in HPB.
HPB netted a profit of HRK 61.4 million in the first half of this year. This is around the same level as last year when the bank's profit was pegged at HRK 61 million. The sale comes at a time when Croatia is under heavy pressure to decrease its public debt and close its budget gap. It now faces its fifth year of recession. Last week, the government also offered its stake in Croatia Osiguranje,a leading insurance company in the country.
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