ZAGREB, July 7 (Hina) - Croatia's Premier Ivica Racan has described agreement on the sale of 16 percent of shares of the Croatian Telekom to the Deutsche Telekom at the price of 500 million euro and the successful offer of 250 million
eurobonds on international markets as two important moments for the development of Croatia and for the current situation in the country as well as for this year's budget. At a news conference on Tuesday, PM Racan asserted that negotiations with the DT had been conducted "in a not so favourable situation at the telecommunications market" and that a good price had been achieved. The negotiations were held in an atmosphere which did not help very much the Croatian team to improve its negotiating position. "Alarmist assertions and misinformation about the course of negotiations, alarmist information about a budgetary crisis and even bankruptcy did not
ZAGREB, July 7 (Hina) - Croatia's Premier Ivica Racan has described
agreement on the sale of 16 percent of shares of the Croatian
Telekom to the Deutsche Telekom at the price of 500 million euro and
the successful offer of 250 million eurobonds on international
markets as two important moments for the development of Croatia and
for the current situation in the country as well as for this year's
budget.
At a news conference on Tuesday, PM Racan asserted that
negotiations with the DT had been conducted "in a not so favourable
situation at the telecommunications market" and that a good price
had been achieved.
The negotiations were held in an atmosphere which did not help very
much the Croatian team to improve its negotiating position.
"Alarmist assertions and misinformation about the course of
negotiations, alarmist information about a budgetary crisis and
even bankruptcy did not help us," Racan added.
Deutsche Telekom, which has already been present in the HT, is a
good strategic partner and we expect it to ensure the development of
the Croatian firm and safety and security for workers.
It is up to us to change the Telecommunications Act in order to
ensure "some things in the interest of development of
telecommunications in Croatia - the strengthening of the position
of an independent regulator and competitiveness," the PM said.
A letter of intent on the sale of 16 percent of the HT shares to
Deutsche Telekom will be signed on 12 July and thereby the German
company becomes the owner of the 51 percent of the HT shares, and
until the autumn a formal agreement should be signed, Premier Racan
said.
Zagreb will retain the controlling block of shares (i.e. 25 percent
plus one share).
Rumours about a grave situation and speculation about a poorer
rating of Croatia were denied on Monday when Croatia successfully
sold 250 million eurobonds on the international market, he said
adding that the entire job was done within 24 hours.
The redemption date is for 10 years, an interest rate is below 6.7
percent. In addition, Croatia's entire rating has been improved
since March, Racan said.
Asked whether the bonds meant additional debts of Croatia, Racan
answered in the positive and added that debts taken abroad made it
possible for his cabinet "to win the battle about cuts in the public
spending." Besides, we will not have to sell 'the family's
silverware' under unfavourable conditions, about which the media
have recently speculated, he added.
The premier said a break would be necessary for authorities to see
what could be and what should not be sold because of national
interests, so that possible sale of the government's stocks in some
companies could be conducted under favourable conditions and in the
interest of Croatia.
Asked about future debts, he answered that yesterday's sale of
eurobonds should be the last loan of this kind this year.
(hina) sb ms