ZAGREB, May 25 (Hina) - The situation in companies in which the state has a majority ownership is devastating. It is thus the Government's task to urgently privatise companies from state portfolios, Prime Minister Ivica Racan said in
Zagreb Thursday. The analysis of the state portfolio, which was presented to reporters at the Government building Thursday, pertains to 1,850 companies in which the state has a minority or majority share. These companies are from the portfolio of the Croatian Privatisation Fund (HFP), the State agency for the rehabilitation of banks and securing savings investments (DAB) and the Croatian Pension Insurance Institute (HZMO). This does not include the state portfolio in insurance companies, banks and public companies. The analysis shows that in relation with the total basic capital of the state portfolio of about 30 billion kuna (US$3.5 billion), the market value is only 19 per cent or 5.8
ZAGREB, May 25 (Hina) - The situation in companies in which the
state has a majority ownership is devastating. It is thus the
Government's task to urgently privatise companies from state
portfolios, Prime Minister Ivica Racan said in Zagreb Thursday.
The analysis of the state portfolio, which was presented to
reporters at the Government building Thursday, pertains to 1,850
companies in which the state has a minority or majority share.
These companies are from the portfolio of the Croatian
Privatisation Fund (HFP), the State agency for the rehabilitation
of banks and securing savings investments (DAB) and the Croatian
Pension Insurance Institute (HZMO).
This does not include the state portfolio in insurance companies,
banks and public companies.
The analysis shows that in relation with the total basic capital of
the state portfolio of about 30 billion kuna (US$3.5 billion), the
market value is only 19 per cent or 5.8 billion kuna (US$682
million).
Racan said it was shocking that state companies last year lost of
DM2 million daily.
The state has about 25 per cent of shares in 974 companies, it is the
owner of 25 and 50 per cent of shares in 448 companies, and majority
owner in 428 of them.
Data speak about last year's loss of a total of 6.2 billion kuna
(US$729 million), while profits were halved (3.1 billion kuna, or
US$365 million).
The situation in most state owned companies is catastrophic, and
the total loss last year was about two billion kuna (US$235
million), while profits reached only 86 million kuna (US$10
million).
"Any loitering now is costly," Racan said, stressing that this
information was a reason for some harsh moves.
Through various measures a chance should be given to those which can
survive on the market. At the same time, solutions must be sought
for about 40,000 workers in companies for which it is difficult to
say they have a perspective, he said.
Vice-Premier Slavko Linic said concrete measures were the
privatisation of portfolios in which the state has up to 25 per cent
of shares on markets by real market values.
Linic announced the Government's readiness to, if necessary, leave
a part of the portfolio to workers in some cases.
Linic also announced the seeking of responsibility of management
and supervisory committees of companies mainly owned by the state
which are suffering great losses, are in great debt and are ready
for bankruptcy.
With companies with dividends, the dividend would be directed
towards the strengthening of the pension fund, Linic said.
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