HPS WILL NOT BE STATE-OWNED BANK

ZAGREB, Nov 29 (Hina) - The Croatian Postal Bank (HPB) will not be a state-owned bank, but a part of its privatisation will be suggested by the end of the year, vice-premier Slavko Linic and Economy Minister Goranko Fizulic told a news conference Thursday. They believe that planned privatisation revenues (of about two million kuna) would be realised by next year. Fizulic said that the two biggest Croatian companies -- Ina and HEP, were preparing a special law on privatisation which would enter procedure in the first quarter of next year. Both Linic and Fizulic said that strategic and financial investors showed interest. Linic reiterated that Ina was completely ready for privatisation, and possible models were the sale of the minority shares, merger, investments of the sale of certain sections. Regarding the HEP, Fizulic said, the government is not searching to a strategic partner who would, considering the circumstances, receive monopoly. Planned is the sale of a small section to financial investors, or an initial public offering in 2003. Linic also said that a growth rate of about four percent which was set for Croatia next year was achievable and possible. He dismissed the possibility that a bigger economic growth could be spurred through monetary measures or a change in the exchange rate. (hina) lml sb