NEW DIRECTIONS OF PRIVATISATION PROCESS PRESENTED

ZAGREB, May 4 (Hina) - The portfolio of the Croatian Privatisation Fund (HFP) still owns shares in 1,850 companies, of which 48 percent are insolvent, whereas 29 percent, with 45,000 employees, have debts which are more than 360 days past maturity date, HFP president Hrvoje Vojkovic said on Thursday. Vojkovic was speaking at a debate about the further directions of privatisation in Croatia and the continuation of privatisation of the Croatian Telecom (HT), held within this year's Fifth Financial Forum. According to Vojkovic, the real value of the HFP portfolio accounts for 20 percent of its overall nominal value. The HFP is preparing draft changes to the Law on Privatisation, which will facilitate and speed up the sale of companies from the Fund's portfolio. The HFP management board would in this way be given an opportunity to negotiate sales under special terms in agreement with competent ministries. A large portion of shares from the portfolio would in this way be sold under very favourable terms, Vojkovic believes. Vojkovic said the "destruction of the HFP's portfolio" was the result of the irresponsible conduct of the companies' managements and supervisory boards. The Fund plans to solve this problem by electing "the right people" to supervisory boards, who will really supervise the work of managements, and it has therefore drawn up the principles and criteria for the selection of members of supervisory boards. (hina) mm rml