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Suker says FINA should become Croatian credit rating provider

ZAGREB, June 29 (Hina) - An award-giving ceremony for companies with best performance in 2008 according to financial indicators was held in the Financial Agency (FINA) on Monday with Finance Minister Ivan Suker commenting on public finances in Croatia.
ZAGREB, June 29 (Hina) - An award-giving ceremony for companies with best performance in 2008 according to financial indicators was held in the Financial Agency (FINA) on Monday with Finance Minister Ivan Suker commenting on public finances in Croatia.

Addressing the ceremony, Suker said that FINA should become a national credit rating agency in the future.

Having its national credit rating provider will protect Croatia from unpleasant experiences such as last month, when in the middle of the presentation of its eurobonds to foreign investors, Croatia was faced with the lowering of its credit rating by an international agency, the minister said.

"When our national agency, that is FINA, which possesses all the relevant data, assesses a credit rating, the assessment will have to be accepted by foreign agencies which do not possess all those data," Suker said.

Funds collected from the issuance of the eurobonds in the amount of HRK 2.3 billion have been used by the government to pay debts to banks, Suker said, calling on those banks to direct the funds into the economy now.

Commenting on the outstanding debts of several major state-run companies such as Croatian Motorways (HAC), Croatian Roads (HC), Croatian Railways (HZ) and the power company HEP, which totalled some HRK 2 billion, he said that the government would help HAC and HC to get loans to cover their late payments.

Commenting on insolvency, Suker said that this problem was not caused only by those who had no available funds but also by those who had enough money but used the current situation as a pretext for nonpayment.

Therefore, the minister announced possible changes to the Company Law with the purpose of preventing those who do not cover their financial obligations from establishing new companies in a bid to evade responsibility.

At the ceremony, the INA oil company was given the award for highest total earnings in 2008. The award for highest net profit went to the HT telecommunications company and the award for best financial rating went to the Uskokovic i Partneri law firm.

Awards were presented in some other categories, too.

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