Missing Serbian tycoon 'coming home'

Karic: Guaranteed police protection

By Alix Kroeger in Belgrade

A fugitive Serbian tycoon whose bank has been ordered to pay millions of dollars in taxes has now said he will return to the country.

Bogoljub Karic originally said he feared for his life, but has now been given security guarantees by the police. Mr Karic's whereabouts have still not been made public.

A spokesman for Mr Karic's bank, Astra Banka, said its finances had stabilised following the withdrawal of $60m in deposits.

The bank owes $30m in taxes imposed after the Milosevic regime

Depositors had begun withdrawing in panic after news of his flight became public.

Mr Karic, who fled Serbia on Monday, is one of Serbia's richest men, but his business empire is in trouble.

Astra Banka is facing a demand for $30m in excess profit taxes, a measure imposed on the country's wealthiest companies by the new government.

It is aimed at clawing back some of the funds the government says were embezzled during the regime of former president Slobodan Milosevic.

More trouble

Mr Karic says the tax is being applied unfairly. He claims the charges are selective.

But that is not the end of his troubles.

The government is also investigating the Serbian mobile phone operator, Mobtel, in which Mr Karic holds a majority share.

The businessman has said he feared for his life, but Serbian police said they had received no reports of threats against him, and they invited Mr Karic to place himself under their protection.