INVESTMENT POSSIBILITIES IN BOSNIA PRESENTED AT FINANCIAL FORUM

ZAGREB, May 22 (Hina) - Croatia is Bosnia-Herzegovina's second most important foreign trade partner, right after Italy, and equally important are its investments in Bosnia-Herzegovina, it was said at an event presenting investment possibilities in Bosnia within the 7th financial forum in Zagreb on Wednesday. #L# Last year, trade between Bosnia and Croatia was very unfavourable for Bosnia - exports to Croatia totalled USD126.7 million and imports amounted to as many as 559.6 million dollars, said an assistant to Bosnia's Foreign Trade Minister, Dragisa Nekic. Nevertheless, in relation to 2000, Bosnia's exports to Croatia grew by almost 53 percent, while imports dropped by 13.1 percent, said Nekic. Last year's direct foreign investments in Bosnia totalled USD164 million, of which Croatian investments accounted for more than 35 percent, the biggest investments being made by Zagrebacka Banka and the Agrokor concern, Nekic said. Nekic said that the country's unemployment rate had been halved in comparison to the post-war unemployment rate, which was around 80 percent. Industrial production has been recovering slowly, although it still makes up only 30 percent of the pre-war production, Nekic said. The average economic growth rate between 1997 and 2001 in Bosnia was 29 percent and in 1997 it was a record 41 percent (one has to take into account a low base). Calling for further investments, Nekic said that a single tax system had been introduced and announced the beginning of so-called "big privatisation", that is, the sale of large companies. "Small privatisation" or the sale of small and medium companies is almost completed, with 70 percent of the companies having been sold. Important projects this year include the privatisation of gas and power supply systems and the telecommunications sector, and the repetition of a tender for the third mobile network operator. (hina) rml sb