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GOVERNMENT PROPOSES THAT STATE PORTFOLIO BE UNITED

ZAGREB, June 21 (Hina) - Measures in order to unite the state portfolio, change tectonics of shares' sale and give benefits for small share-holders were included in general amendments to the Privatisation Act, which were discussed by the Croatian Government on Wednesday.
ZAGREB, June 21 (Hina) - Measures in order to unite the state portfolio, change tectonics of shares' sale and give benefits for small share-holders were included in general amendments to the Privatisation Act, which were discussed by the Croatian Government on Wednesday.#L# The Government also forwarded the Budget Law's amendments referring to the state treasury and amendments to the Arms Law to the national parliament for consideration. Under draft amendments to the privatisation law, an united portfolio of the state will incorporate shares and portions held by the Croatian Privatisation Fund (HFP), the State Agency for the protection of bank deposits and bank rehabilitation (DAB), institutes of the pension and health insurance, public companies, institutions and firms owned or founded by the Republic of Croatia. This portfolio will be run by the Privatisation Fund (HFP), while the HFP managing board will be authorised to sell shares. The Fund's head, Hrvoje Vojkovic, pointed to the change in the technics of the sale. To date, the purchase has been done at the nominal price, but this has not produced expected results. Therefore, market value is to be introduced as a basic criterion for the sale, Vojkovic explained. Payment facilities for small-share holders are also envisaged, as about 100,000 small share-holders (out of a total of 620,000 of them) ceased to pay for shares they had bought at a discount, owing to a bad economic situation and devalued portfolios, he said. The facilities refer to granting a 80-percent discount to the unpaid amounts for shares and additional 50 percent in case if a buyer is ready to pay the entire amount at once. The facilities will cover would-be buyers who will conclude deals, Vojkovic said. There was a proposal for introducing new forms of the sale. Thus there will be a final public sale at which shares and portions with low value or shares and portions, which the Fund has not been able to sell so far, can be bought. The initial price will be symbolic of one kuna, although it can rise later on, Vojkovic added. During Wednesday's session, chaired by the first deputy Prime Minister Goran Granic who replaced Premier Ivica Racan as he was currently on vacation, the Government sent into an urgent parliamentary procedure amendments to the budget law, envisaging that the state treasury become an administrative organisation within the Finance Ministry. The Government decided that the stay duty for 2001 be the same as this year going between 2 and 7 kuna, which depends on the sort of accommodation and the duration of a guest's stay. (hina) mm ms

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