ZAGREB, Nov 14 (Hina) - Reduced daily losses, the consolidation in insolvency and in the entire indebtedness are first results of the incumbent Government in the management over the portfolio of state-held shares, Croatian
Privatisation Fund (HFP) head, Hrvoje Vojkovic, assessed at Tuesday's news briefing he held in the Government's building.
ZAGREB, Nov 14 (Hina) - Reduced daily losses, the consolidation in
insolvency and in the entire indebtedness are first results of the
incumbent Government in the management over the portfolio of state-
held shares, Croatian Privatisation Fund (HFP) head, Hrvoje
Vojkovic, assessed at Tuesday's news briefing he held in the
Government's building.#L#
From May when the Government launched measures to November, the
entire loss of the portfolio was slashed by 42 percent, while daily
losses of companies whose shares are in the portfolio were cut by 12
percent from 6.6 million kuna in May to 5.5 million in November. In
addition, a trend of further downfall is obvious, he said.
Vojkovic cited a rise in foreign investments, transparent
procedure and the altered privatisation law to the benefit of small
share-holders as basic strategic guidelines in the management over
firms where the Government had a portion.
Unfortunately, during the privatisation process, of 641,000 small
share-holders who concluded contracts with the Government on
instalment payment for the shares, only 166,000 have to date paid
their instalments completely.
This November the Fund set up three categories of companies: the
first group includes 1,011 firms where the Government holds up to 25
percent of shares; the second is with the Government's portion
between 25 and 50 percent (295 companies); and, the third group are
225 with the Government as the absolute majority owner.
Privatisation will most speedily proceed in companies where the
Government possesses smallest portion: some of them is likely to be
given to owners whose property was nationalised by the Communist
rule in the wake of the Second World War; 207 companies have already
been offered for sale on the stock exchanges, while shares from 507
firms will be sued for the settlement of the Defence Ministry's
debt.
Firms where the state possesses over one quarter of shares pose a
greater problem. About third of them is likely to file for
bankruptcy procedure, decisions on the destiny of another 181 firms
are to be made upon proposals of their management and unions, while
the rest is undergoing the estimation.
(hina) jn ms