FOREIGN INVESTMENTS IN CENTRAL AND EAST EUROPE TOTAL 150 BILLION

VIENNA, June 10 (Hina) - Foreign investments in Central and East European countries in the past 12 years amounted to 150 billion US dollars, said participants in an economic forum marking the 75th anniversary of Raiffeisen Zentralbank Oestereich (RZB), held in Vienna on Monday. #L# In the past 12 years, Poland was the biggest recipient with investments worth USD29 billion. It is followed by the Czech Republic (21 billion) and Hungary (19 billion). Opening the forum "Europe Without Frontiers", Austrian Chancellor Wolfgang Schuessel said the enlargement of the European Union, planned for 2004, could bring benefits both to the EU and Central and East European countries. It is evident from the fact that exports from the EU into 10 candidate-countries quadrupled, rising from 30 to 125 billion euros in the past ten years. Exports from the candidate-countries into the EU also climbed from 24 to 110 billion euros. Analyses show that CEE countries had strong and continued growth, higher than EU members, and such trend should continue with their admission to the European block. The ten countries, which are to be admitted to the EU in the next round, have GDP per capita ranging between one and two thirds of the average GDP in the EU. For instance, Slovenia's GDP per capita is EUR15,900 or 74 percent of the European average, the Czech GDP per capita is EUR13,300 (64 percent), and Hungary's 11,300 (62 percent). This is higher than the GDP per capita registered in Spain, Greece or Portugal at the time they joined the EU. Speaking about business activities in Central and East Europe, the RZB managing board's vice-president Herbert Stepic singled out Slovenia as the richest country in the region and Croatia as the country granting the most loans to citizens. He said credit financing accounted for 15 percent of the Croatian GDP. The RZB managing board's president, Walther Rothensteiner, said the balance sheet of banks in the RZB network climbed by 67.3 percent to EUR11.4 billion in 2001, and the balance sheet of the entire RZB group rose by 22.3 percent to EUR44.6 billion, with a total of 14,000 employees. The assets of Raiffeisen Group are now around EUR110 billion. The round table drew almost 700 government officials and representatives of financial institutions from the CEE region. Croatia's Deputy Finance Minister Damir Kustrak represented Zagreb at the event. Also attending were representatives of a dozen Croatian companies. (hina) ms