LONDON CITY MAYOR ATTENDS CROATIAN FINANCIAL FORUM

ZAGREB, May 17 (Hina) - One of the key things Croatia has to work on is to change the perception it has in the eyes of foreign investors, who are still partly under the impression of images of war, London City mayor Sir David Howard said in Zagreb on Thursday. Howard opened a seminar called "London - Your International Financial Partner", held as part of the Sixth Croatian Financial Forum, which is attended by a group of British investors. According to Howard, one way Croatia can change its perception in Great Britain is by attracting as many British tourists as possible. Ten years ago they accounted for almost half a million guests per year, whereas today the figure has dropped by half. Howard said his visit to Croatia was not aimed only at promoting the British financial industry, but also at gathering data and experience on Croatia which to convey to British investors. Croatia's economy minister assistant for investment stimulation, Renata Seperic, said foreign investments in the past mainly came through privatisation and that proceeds from privatisation often covered the "holes" in the state budget. This has to change, she asserted, adding the government should eliminate administrative obstacles keeping foreign investors away, as well as fortify the role of domestic investors, banks in particular. Commenting on the problem of the growing of the banking sector in the world and the take-over of Croatian banks by foreigners, Sir Howard said the concentration in this sector in the world was a trend which had to be felt in Croatia. He added, however, that the biggest challenge for Croatia was closer cooperation with the rest of the world without, however, being swallowed by foreign capital or losing economic independence. (hina) ha sb