ECONOMY MINISTER: GOVERNMENT IS NOT PRIVATISING HEP BY IMF ORDER

ZAGREB, March 1 (Hina) - At a parliamentary discussion on a bill on privatisation of the Croatian Power Industry (HEP) on Friday, opposition representatives accused the government of gambling with the future of the country's power supply under an order by the International Monetary Fund (IMF), which the Economy Minister, Goranko Fizulic, refuted. Representatives of the Croatian Democratic Union (HDZ) and the Croatian party of Rights (HSP) stressed they were for the privatisation of HEP, but not today and not under pressure by the IMF. They did not give up on the claim that the government was patching up holes in the budget by HEP's privatisation and that the privatisation was a consequence of IMF's dictatorship. Vladimir Seks of the HDZ said the government was trying to trick the parliament into supporting the deal with the IMF, which made Fizulic answer "after we lost Pesta, Vienna and Belgrade (as enemies), we now have the IMF". Defending the HEP privatisation process, Fizulic said public companies INA and HEP were not a problem of budgetary deficit, and that their shares would be offered at the bourse so both Croatian citizens and foreigners could buy them. The purpose of their privatisation is a growth of shares and them becoming successful companies, and not "an order by the disliked IMF", Fizulic told Seks. He added the privatisation concept brought competition, which improves the status of citizens and real sector. He recalled the banking sector had proved this with its positive role in the development of economy and standards in Croatia after privatisation. Interest rates on loans for citizens dropped to seven percent, and were 18 percent when we were taking over power, Fizulic reminded Seks of the HDZ rule. Opposition representatives than asked Fizulic to answer whether and how much will the price of electricity go up in the future, and whether Croatian citizens' standards could handle it. They did not receive a concrete answer. (hina) np sb