PARLIAMENT MULLS NEW PRIVATISATION MODELS

ZAGREB, April 26 (Hina) - Outlining the strategic goals of a new privatisation policy in parliament on Thursday, the president of the Croatian Privatisation Fund (HFP) mentioned increasing the effectiveness of the economy and budgetary revenue, and attracting foreign investors. Presenting a state portfolio privatisation model, HFP's Hrvoje Vojkovic said the new government upon coming into office in January 2000 had encountered a devastating state of affairs in state-owned companies. Losses totalled 6.2 billion kuna ($729 million), daily losses 7.5 million ($882,400) and many companies were not paying wages, were overindebted and insolvent, he said. The losses and companies' insolvency were cut last year and now the government offers ten privatisation models which should expedite the process, said Vojkovic. Some 1,400 companies with a nominal value of some 26.6 billion kuna ($3.1 billion) should be privatised. Proposals include compensation-free allocation of shares to the disabled, families of killed Croatian soldiers, and citizens deprived of property during the pre-1990 communist regime, privatisation through the employee stock ownership plan, discount sales to the employed and the formerly employed, and privatisation through public tendering and public auctions. (hina) ha sb