PARLIAMENT BEGINS DISCUSSION ON PRIVATISATION

ZAGREB, Nov 29 (Hina) - The Croatian parliament started a discussion on the results of the state portfolio privatisation on Thursday. Vice Premier Slavko Linic stressed that in a year and a half, the privatisation has delivered significant financial results. He expressed dissatisfaction with the performance of the management and supervisory boards of some trade companies owned by the state. Linic warned that the state portfolio value amounted to a mere 19 percent of its nominal value. According to him, reasons for this are out-of-date technology, problems in the personnel structure, excessive debts of trade companies and "factionalism" in managing the portfolio. In that period, over 600 trade companies have been privatised, and financial obligations of trade companies in the portfolio have been decreased by almost one third of the amount, Linic said. Linic warned that daily losses, which exceeded 7.5 million kuna (USD892,860) in some companies, were now below 3.7 million kuna (USD440,480). He added the government expected the losses to drop bellow three million kuna (USD357,140) by the end of 2001. However, the government is not completely satisfied with performance of some trade companies' management and supervisory boards. Planned improvements in the personnel sector have not been entirely completed, said Linic, and announced the change of personnel resolutions in the management and supervisory boards of state owned trade companies. (hina) np sb