March 29 (SeeNews) - Slovenia has requested Croatia to terminate the legal proceedings against Ljubljanska Banka (LB) and Nova Ljubljanska Banka (NLB) related to Yugoslav-era savings deposits, the Slovenian foreign ministry said.
Slovenia's foreign ministry said in a statement on Wednesday it sent a verbal note to Croatia protesting the legal proceedings it has launched, and asking Croatoa to engage in negotiations towards finding a solution.
Slovenia believes Croatia is violating the memorandum of understanding signed between the two countries in 2013, which said that NLB deposit cases would be resolved according to the Yugoslavia succession treaty of 2001. The treaty regulates the rights and obligations of successor states to the former Yugoslav federation.
Slovenia's foreign ministry concluded the note by asking Croatia to stop violating its international obligations. It added that it now expects its neighbour to remedy without delay the "consequences of its unlawful practices".
NLB was created in 1994 to protect itself from the liabilities incurred by Ljubljanska Banka - the defunct bank from which NLB originated. The bank was taken to court in Croatia over the deposits repaid to the bank's former customers in Croatia by Croatian banks. The deposits became Croatia's public debt, for which the country then decided to seek compensation in court.
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