Government spokesman Ratko Macek said after the session the government was conducting intensive consultations about the case of the Opatija-based hotel company and was trying to protect state interests.
The Liburnia company came into the limelight recently when the government decided to give a large part of its shares in the company to the above-mentioned holdings to repay its debt dating back to the voucher privatisation in the late 1990s.
The government's move met with strong criticism from the local community in the seaside resort of Opatija and many political parties and trade unions. It was then established that the Croatian Privatisation Fund (HFP), which was responsible for the preparation of documents pertaining to the case, had failed to notify the government that the HFP managing board had in the meantime rescinded an agreement it previously reached with the SN holding.
Macek said that the Ivo Sanader cabinet was going to appoint a working group to draft a new privatisation law.
The Chief State Prosecutor, Mladen Bajic, attended today's session of the inner cabinet.
Macek explained that Bajic informed the government about the activities of his office, which he did on a regular basis.
Asked to comment on Slovenia's plans to proclaim an epicontinental shelf in the Adriatic, Macek said that the Croatian Foreign Ministry was intensively working on that case.
"We want to solve this problem in the spirit of good neighbourly relations. If this proves impossible, we shall go to international arbitration."
The strongest opposition party in Croatia - the Social Democratic Party (SDP) - on Thursday flayed Slovenia's plans to adopt a law on the epicontinental shelf. Some other political parties in Croatia have criticised this move as well.
The Croatian government is due to hold the first session tomorrow after a summer recess.