VICE-PREMIER SAYS 18 BLN KUNA TO BE INVESTED IN PUBLIC COMPANIES

ZAGREB, March 31 (Hina) - A score of public companies are this year planning to invest a total of 18 billion kuna (EUR2.33 billion), of which 85 percent could be realised by domestic producers and concessionaires, Croatian Vice-Premier Slavko Linic said Monday. #L# In the past three years the government managed to consolidate public companies, secure their profitable work and strengthen their investment activity, said Linic. According to available data, some twenty public companies have in the last three years increased profits by about 5.5 billion kuna -- from 43.3 billion in 2000 to 48.7 billion in 2002 -- while expenses grew slower, from 44.3 billion in 2000 to 45.2 billion kuna in 2003. While companies wrapped up the year 2000 with about a billion kuna higher loss than profit, the 2002 year ended with profits of 3.4 billion kuna after covering losses. The overall gross earnings of the companies in 2002 amounted to 3.8 billion kuna, while overall loss totalled 388 million kuna. The highest gross income last year was made by the Croatian Telecom (HT) with 2.3 billion kuna, INA oil company with 854 million kuna and Plinacro with 181 million kuna. Croatian Railways (HZ) marked the highest loss of 227 million kuna because of indebtedness for investments into infrastructure, said Linic. The official said that with the government's direct influence through ministers in supervisory committees of public companies, they had managed to consolidate. He dismissed the possibility of ministers continuing to be members of supervisory committees pursuant to a bill on preventing a conflict of interest, which is being prepared. Linic said that notwithstanding the continuation of the crisis in Europe and the world and events in Iraq, the planned growth of Croatia's GDP to 4.2% this year was realistic. According to statistical data, economic growth last year was 5.2%. (EU1 = 7.7 kuna) (hina) lml sb