CRO PRIVATISATION FUND TO IMPROVE MANAGEMENT OF STATE PROPERTY

ZAGREB, Mar 3 (Hina) - The Croatian Privatisation Fund (HFP) should soon be managing not only its portfolio but the portfolios of the State Agency for the Financial Rehabilitation of Banks and the Insurance of Savings Deposits (DAB), Pension Insurance Institute and the Croatian Government. This will help improve the management of state property, HFP officials told a news conference on Friday. The first session of the HFP board in its new composition, including Deputy Prime Minister Slavko Linic and the ministers of finance, economy, tourism, and agriculture and forestry, today decided to suggest to the Government that it annul at tomorrow's session an invitation for bids for the sale of shares of 'Primosten' hotel company and decide on announcing a new invitation for bids for the sale of this company. Speaking about HFP's current portfolio, the chairman of the HFP board, Slavko Linic, said its market value was very problematic and questionable. After having studied documentation regarding the sale of 151,126 shares of "Karlovacka pivovara" to "Southern Breweries Establishment" company, owned by Androniko Luksic, in 1994, the HFP has established that the buyer was entitled to a 10 and not 30- percent discount. The HFP board today requested a complete report on the sale of "Karlovacka pivovara" shares and that it be established who was responsible for granting the discount. Linic said the HFP now faced the task of determining the principles of its future operation and decision-making, stressing one had to be very cautious especially in making decisions on foreign investments. The interest of every foreign investor is to buy as favourably as possible and responsibility rests with us, Linic said. (hina) mm rml