GOVT. SUPPORTS BUSINESS PLANS OF THREE STATE COMPANIES

ZAGREB, March 20 (Hina) - The Croatian government on Thursday supported this year's business plans of the insurance company Croatia osiguranje, Croatian Lottery and the Croatian Postal Bank (HPB), whose sole or majority owner is the state. #L# Finance Minister Mato Crkvenac said only two years ago the companies had been in a very difficult situation, however, they now functioned successfully and could play an important role in the region. Croatia osiguranje, the largest national insurer, in the past two years realised profits, which, in 2002 totalled 78.2 million kuna (EUR10.24 million). This year the company plans to increase profits by seven percent to around 83 million kuna (EUR10.87 million). The Croatian Lottery now operates extremely successfully using modern technology and has seen a trend of profit and investment increase. Compared to the projected profits in 2002 of 45.4 million kuna, this year the company expects a profit of 67.3 million kuna, an increase of 48%. Two years ago, the losses of the Croatian Postal Bank totalled 172 million kuna. Last year, the bank made a profit of 67.5 million kuna. This year it expects the completion of recapitalisation (25% plus one share), to be carried out by the IFC, part of the World Bank. Finance Minister Mato Crkvenac, who is on the companies' supervisory boards, spoke about their great business progress. He added that the HPB and Croatia osiguranje were ready for partial privatisation to the extent that was necessary to secure their efficiency, however, with Croatian subjects remaining their majority owners. Crkvenac also addressed the performance of ministers in supervisory boards, saying their work on the boards was not paid and their salaries as ministers were two times lower than ministers' salaries in 2000. Prime Minister Ivica Racan added that data was being collected on how much money members of supervisory boards before 2000 had received for their unsuccessful work. 1 EUR = 7.63 kuna (hina) rml sb