CRKVENAC: PLANNED BUDGET REVENUES BEING REALISED

ZAGREB, July 3 (Hina) - Croatian Finance Minister Mato Crkvenac said on Tuesday yesterday's decision on two financial transactions - the sale of 16 percent of Croatian Telecom (HT) shares at a price of 500 million euros and the increase of the spring issue of government euro-bonds by 250 million euros - will help realise planned budgetary revenues. Crkvenac is satisfied with the price and result of the sale of another 16 percent of HT shares to Deutsche Telekom and the price of 500 million euros. Together with the previously purchased 35 percent of HT shares, DT is now the owner of 51 percent of HT shares. The agreed sale of 16 percent of HT shares is a good deal for both sides, Crkvenac told a news conference held after the signing of an agreement with the World Bank on a loan for the improvement of Croatia's judicial system, particularly the segment dealing with bankruptcy proceedings. The director of World Bank's department for Central and East Europe, Andrew Vorkink, believes the price of 500 million euros for 16 percent of HT shares is entirely satisfactory given the situation in telecommunications systems not only in Central and East Europe but the entire world. This is a very good price both for Deutsche Telekom and Croatia, Vorkink said. Crkvenac told reporters the increase of the spring issue of euro- bonds by 250 million euros was agreed yesterday under very favourable conditions. In March this year Croatia issued bonds worth 500 million euros and the announced increase will set their amount at 750 million euros. The finance minister says the two transactions will enable the realisation of planned revenues and keep the budget under control. However, he said additional efforts would be made to harmonise budgetary expenses with revenues and emphasised that no changes would be made to the economic policy. (hina) sb rml