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SABOR DISCUSSES SITUATION IN STATE-RUN PORTFOLIO AND PRIVATISATION

ZAGREB, Nov 29 (Hina) - The Croatian parliament on Friday debated results of the privatisation until 2002.
ZAGREB, Nov 29 (Hina) - The Croatian parliament on Friday debated results of the privatisation until 2002. #L# Presenting the results, a deputy prime minister, Slavko Linic, said the government had managed to set up control in the Privatisation Fund (HFP) over the management of companies, and introduce the keeping of records for assessment of works of supervisory and managing boards of those companies. Linic informed that in the last three years a total of 112 companies had been privatised, positive results had been enhanced and the problem of insolvency and illiquidity solved to a great extend. "We are now able to precisely define a model of privatisation which is being transparently performed, mainly via the Zagreb and Varazdin Stock Exchange, and financial resources obtained through privatisation are earmarked for the reconstruction and investment in road construction and water supplies," he added. He pointed to the very small ability of the Fund to exert influence on the destiny of companies where the government holds less than 50 percent of shares, and he believes that privatisation investment funds should be held accountable for it, which, as he said, often refute the Fund's decisions. Linic announced that the privatisation would be led in a satisfactory manner in 2003. The Fund's Vice President, Kresimir Starcevic, said the privatisation would in future be carried out in line to two models: public auctions for companies where the state holds up to 50 percent of shares and the invitation for bids where the state is a majority owner. (hina) ms sb

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