Croatia's former PM Sanader released on bail

ZAGREB Dec 16 Croatia's former Prime Minister Ivo Sanader, on trial for corruption, was released from custody on bail of $2.2 million on Friday after more than a year, but ordered not to leave the capital Zagreb without court permission.

The bail of 12.6 million kuna ($2.2 million), comprises 300,000 euros ($390,000) in cash and a mortgage guarantee on property owned by his wife and friends. His release was in line with this month's Constitutional Court ruling he should no longer be detained.

"All preconditions for Sanader's release have been met. In case of his escape the state would take over the offered bail," Zagreb county court spokesman, Kresimir Devcic, was quoted as saying by state news agency Hina.

Sanader also had to deposit his passport with the court. He was arrested last December in Austria and extradited to Croatia in July.

"I'm happy I will now be together again with my family. Now I want to focus on proving my innocence," Sanader told reporters after leaving a prison in Zagreb.

CORRUPTION CHARGES

The Zagreb county court is trying Sanader on two counts of corruption and recently indicted him on another corruption allegation. Two other separate investigations against the man who led Croatia in 2004-2009 are going on.

He is on trial for allegedly taking bribes to facilitate a loan by Austrian bank Hypo Alpe Adria to Croatia when he was deputy foreign minister in 1995 and for securing Hungarian energy group MOL a dominant position in Croatia's oil concern INA in 2008.

He is also indicted, together with his former conservative HDZ party, for allegedly creating slush funds for the party.

Sanader, who denies any wrongdoing, quit the government unexpectedly and without explanation in the summer of 2009.

His hand-picked successor, Jadranka Kosor, then launched an anti-graft campaign which helped Zagreb complete European Union entry talks. Croatia is set to join the EU in July of 2013. ($1 = 5.7777 Croatian kunas) ($1 = 0.7694 euros) (Reporting by Igor Ilic)