FOREIGN INVESTMENTS IN CROATIA MAINLY GO INTO PRIVATISATION

ZAGREB, Jan 9 (Hina) - According to the amount of direct foreign investments in Croatia, 2002 is likely to be one of "poorer" years in the last five years, and investments mostly "ended up" in the privatisation process, primarily in the privatisation of banks, while there were no significant investments in new manufacturing capacities. #L# According to the latest data, which the Croatian National Bank released on its web-site, in the first three quarters of 2002, the direct foreign investments in Croatia amounted to 763.5 million US dollars, of which $333.8 million were ownership investments. In 2001, for instance, foreign investments totalled over $1.5 billion, and 808.4 million were ownership investments. From 1993 to the end of the third trimester of 2002, foreign investments in Croatia amounted to US$7.5 billion, with over five billion dollars were in the privatisation process. In the first nine months of 2002, over 66 percent of the investments were in processes of privatisation and in the sale of shares of Dubrovacka, Splitska and Rijecka banks. Over ten percent (i.e. 10.8 percent) accounted for investment in hotels. Most of investments in the first three quarters last year came from Austria (62.4 percent), which was followed by Italy (22.7 percent). As regards investors-countries in the period from 1993 to the end of September 2002,, Austria took over the leadership with some 30 percent. Germany makes up 22.8 percent, and the third-ranked is the United States with 15 percent. As regards business sectors, telecommunications received the largest part of those funds (27.1 percent). The banking sector is the second receiving 20.3 percent of all investments, and the manufacturing of the pharmaceutical products is the third (14.4 percent). (hina) ms