GOVT AGREES ON CONDITIONS FOR SALE OF CROATIAN TELECOM

ZAGREB, July 2 (Hina) - The Croatian government said in a statement tonight it is "satisfied it can announce that it agreed with the Deutsche Telecom on conditions for the sale of a 16 percent share of the Croatian Telecommunications company (HT) at a price of 500 million euro". The statement read "the agreement is a clear signal that the Croatian government intends to continue the privatisation process in Croatia. It also represents an important step in the development of the HT as the foundation of a modern and competitive telecommunications industry which will be the driving force of the economy as a whole. The conditions of sale establish a framework for the further development of telecommunications in Croatia and indicate significant investments. They also represent a development basis for the further liberalisation of the Croatian telecommunications market," the statement said. The government added "the Deutsche Telecom decision is a confirmation of Croatia's credibility in international investment circles". "The government remains adamant in its commitment to develop the live capital market in Croatia, as in strengthening the country's role on the international market through the public offer of the HT. We believe the DT's permanent orientation for HT and the Croatian market in general will show the way for international and home investors," the government said. Croatia's advisor in the privatisation of the HT is the Schroder Salomon Smith Berney investment bank. (hina) lml