Serbian bank crisis as owner flees

Mr Karic said snipers were stalking his Belgrade home

By Alix Kroeger in Belgrade

One of Serbia's biggest banks, Astra Banka, has appealed to depositors not to withdraw their money after its owner fled the country.

Hopes of an economic boom since Milosevic's ousting have been dashed

Bogoljub Karic, the head of Serbia's wealthiest family, left suddenly on Monday, claiming his life was in danger.

Depositors have already taken about $60m dollars out of the bank since the news of Mr Karic's departure became public.

The bank has been ordered to pay about $30m dollars in excess profit tax and has been placed under temporary management by Yugoslavia's Central Bank.

Serbia's government has cast doubt on Mr Karic's claims saying he had not reported any threats and he could return any time he chose.

Mass withdrawals

The position of Astra Banka looks increasingly precarious after the mass withdrawals overnight by depositors.

The demand for $30m in profit tax was aimed at recouping some of the taxes not paid under the regime of former President Slobodan Milosevic.

Last week Yugoslavia's Central Bank imposed temporary management on Astra Banka after an audit found potential for high losses.

Mr Karic claimed there were gunmen armed with sniper rifles lurking outside his house in Belgrade.

Police protection

Mr Karic said in a statement he had fled with his family to an undisclosed country where he was under police protection.

The bank still owes $30m in taxes unpaid under the regime of Slobodan Milosevic

The Serbian authorities have said there were no gunmen outside his house and that can return whenever he wants to.

The police are not looking for him.

Mr Karic is chairman of Serbia's wealthiest company, BK Group.

It owns the BK television network and a majority share in Serbia's biggest mobile phone operator. Financial police are also investigating the deal under which the mobile phone operator was set up.