ZAGREB, Feb 14 (Hina) - The incumbent Croatian Government has clearly marked 2001 as a year when the biggest portion of the state-run portfolio should be privatised, a Deputy Prime Minister, Slavko Linic, said on Wednesday. This year
is to see almost completed privatisation of the Croatian Telecom and privatisation of two banks - Croatia and Dubrovacka -, Linic said at a seminar on the privatisation of companies. According to a memorandum towards the International Monetary Fund (IMF), proceeds from the privatisation will be used for the payment of obligations towards international financiers, the senior government official added. Linic announced the government would adopt a privatisation strategy by the end of this month. He said it would be necessary to start a process of privatisation of local public utilities companies and infrastructure. As regards the priv
ZAGREB, Feb 14 (Hina) - The incumbent Croatian Government has
clearly marked 2001 as a year when the biggest portion of the state-
run portfolio should be privatised, a Deputy Prime Minister, Slavko
Linic, said on Wednesday.
This year is to see almost completed privatisation of the Croatian
Telecom and privatisation of two banks - Croatia and Dubrovacka -,
Linic said at a seminar on the privatisation of companies.
According to a memorandum towards the International Monetary Fund
(IMF), proceeds from the privatisation will be used for the payment
of obligations towards international financiers, the senior
government official added.
Linic announced the government would adopt a privatisation
strategy by the end of this month.
He said it would be necessary to start a process of privatisation of
local public utilities companies and infrastructure.
As regards the privatisation of the infrastructure and power sector
we cannot now think about retaining the majority package in such
companies, owing to inherited dubiousness and misused means, Linic
said adding that the system of transmission lines in the power
sector would not be privatised but concessions for the management
would be granted for some period.
Linic, who is the chairman of the Croatian Privatisation Fund's
management committee, said the entire process of privatisation
should be wrapped up in coming two or three years.
The Fund's head, Hrvoje Vojkovic, spoke of a new role of this body in
the management of the entire portfolio of the state.
An analysis of the portfolio shows total losses of 6.2 billion kuna
(approximately 756 million US dollars), with a loss on the daily
basis of 7.5 million kuna ( US$ 910,000), overindebtedness,
insolvency, out-of-date technology and a lack of experts.
That's why the value of the entire portfolio dropped to only 19
percent of its nominal value, Vojkovic asserted and expounded 10
models for the further privatisation of the portfolio.
The seminar was organised by the Fund, companies - Fortis
Savjetovanje and Arthur Andersen - and a law firm "Zuric &
Partners".
(hina) ms