Croatia's HPB says still in cap hike talks with EBRD - media

Hrvatska Postanska Banka (HPB) needs an urgent financial injection in order to raise its capital adequacy ratio, which has fallen to around 8.0%, news daily Vecernji List reported, quoting Vuic as saying.

Earlier in December, HPB decided to shelve plans to issue subordinated bonds with a target value of 60 million euro ($73.4 million), citing current investor interest which would not ensure the full realization of the debt issue's objectives.

The lender said at the time that the bond aimed to help meet regulatory capital requirements.

HPB turned to a non-consolidated net loss of 409.8 million kuna ($65.4 million/53.5 million euro) in the first nine months of 2014 from a net profit of 73.8 million kuna a year earlier.

In late 2013, an attempt to sell the government's 99.13% stake in HPB failed after Croatia rejected the only binding bid, filed by Erste Bank.

(1 euro=7.6643 Croatian kuna)