ZAGREB, March 9 (Hina) - The Croatian National Parliament's House of Counties on Tuesday endorsed the adoption of amendments to the bankruptcy law and described them as a measure aimed at improving the situation in the economy and the
resolution of illiquidity. Some of the Sabor upper house's members, particularly SDP (Social Democratic Party) representatives, warned that the proposed solutions could not significantly changed the serious economic situation, since they dealt with consequences rather than causes of problems. During a long discussion on this matter, Ivan Brlekovic of the ruling HDZ (Croatian Democratic Union) party said the issue of bankruptcy was not just a temporary problems, but it had been present during all years of establishing a market economy. Brlekovic cited figures according to which there were 215 cases of bankruptcy in 1990, 248 in 1991, while 1993 saw more than 250 cases of bankruptc
ZAGREB, March 9 (Hina) - The Croatian National Parliament's House
of Counties on Tuesday endorsed the adoption of amendments to the
bankruptcy law and described them as a measure aimed at improving
the situation in the economy and the resolution of illiquidity.
Some of the Sabor upper house's members, particularly SDP (Social
Democratic Party) representatives, warned that the proposed
solutions could not significantly changed the serious economic
situation, since they dealt with consequences rather than causes of
problems.
During a long discussion on this matter, Ivan Brlekovic of the
ruling HDZ (Croatian Democratic Union) party said the issue of
bankruptcy was not just a temporary problems, but it had been
present during all years of establishing a market economy.
Brlekovic cited figures according to which there were 215 cases of
bankruptcy in 1990, 248 in 1991, while 1993 saw more than 250 cases
of bankruptcy. He claimed that a large part of this problem was a
legacy of the previous Socialist system.
Ivan Ninic of the SDP opposed such claim and said the current policy
and economy are to be blamed for this situation. About 27,000
companies are being blocked, and 1.5 billion kuna (approximately
US$ 230 million) have been spent for the rehabilitation of various
firms in the past two months, whereas 1.8 billion kuna have been
earmarked to be spent for this purpose in the entire year, Ninic
added.
Commenting on draft provisions about trustees in bankruptcy,
several MPs demanded that trustees should work in economy at least
10 years, have university qualifications and pass the professional
exam in order to be entrusted with such task.
Some MPs objected that amendments were not followed by basic
indicators such as the number of firms which have gone into
bankruptcy and results of rehabilitation programmes.
The upper house endorsed a draft bill on the implementation of UN
Resolution 1160 provisions on the ban on selling and shipments of
arms to the Federal Republic of Yugoslavia (Serbia/Montenegro).
Ankica Mamic of the Liberal Party (LS) posed a question why the
parliament needed one year to support the UN Security Council
Resolution which was passed in March last year. She got the answer
that the delay had been caused due to some procedure reasons.
Croatia is, however, among first 30 countries which responded to
the Resolution in this way.
The House of Counties positively assessed two draft bills on
ratification of contracts with the World Bank and the European Bank
for Reconstruction and Development (EBRD) for a project of the
restructuring the Croatian Rail (HZ).
Under the project which is valued 183 million dollars, the World
Bank is to grant 101 million loan, the EBRD 35 million, and another
47 million will be earmarked from the Croatian state budget to help
the clapped-out railway system in the country.
Even a third of the World Bank's loan will be given to workers who
must be laid off in the process of the HZ modernisation. Such a big
amount of money for the layoffs can be the reason to exercise
caution in accepting the loan, said Tereza Ganza Aras of the LS.
Nonetheless, a majority of the members of the upper house
maintained that loans were necessary for assistance in overcoming
the grave situation in the HZ.
(hina) ms