LEGSI INDEX DROPS DUE TO SISAK IRONWORKS AFFAIR, PRIVATISATION OF INA

ZAGREB, Dec 20 (Hina) - The Lehman Brothers Euroasia Group Stability Index (LEGSI) for Croatia in December is 56 points, which is a decrease of one point as against November. The drop was caused by events in Sisak Ironworks and disagreements in the privatisation of the Ina oil company. #L# Analysts of the U.S. consulting company Euroasia Group and the Lehman Brothers investment bank say in their latest report, which the Croatian Employers' Association released on Friday, that positive steps made in Croatia's political front were the hospitalisation of General Janko Bobetko and an agreement of President Stjepan Mesic and Prime Minister Ivica Racan on retiring general Petar Stipetic. Commenting on the social front and recent events which had negative effects on the index, analysts pointed the strike of Sisak ironworks workers and their conflict with the police, which also affected the stability and popularity of the government. The analysts also pointed to a step back on the economic front, primarily in the privatisation of Ina. With 56 points of the Lehman Brothers Eurasia Group Stability Index, Croatia is ranked 13th among the monitored countries. Preceding it are Hungary, Poland, Mexico, Bulgaria, Brazil, Thailand, China, South Africa, Russia, Turkey Saudi Arabia and the Philippines. Behind Croatia on the list are Ukraine, Egypt, Venezuela, Argentina, Uzbekistan, Indonesia, Colombia, Azerbaijan, and Nigeria. Lehman Brothers Eurasia Group offers the premier comparative political and economic tool designed specifically to measure stability in emerging markets. The monthly Lehman Brothers Eurasia Group Stability Index, acts as an 'early warning' system to help anticipate critical trends and provide a measure for country capacity to withstand political, economic, security, and social shocks. (hina) it