ZAGREB, March 23 (Hina) - Croatia is not facing a financial disaster, Croatian Prime Minister Zlatko Matesa said during the question time of the session of the Croatian National Sabor's House of Counties on Tuesday. The Prime Minister
said the pension fund and the health insurance fund were facing great problems because, he added the rights that were granted to those two institutions were greater than their real possibilities. Matesa presented data that in the past four years the average annual increase in salaries was 21 percent, while pensions annually increased by 18 percent. According to him consensus was necessary for solving those serious problems in the pension and health insurance systems, namely an agreement according to which the institutions are allowed to spend only available funds. Matesa said that currently in Croatia there were more than one million retired persons. He added that the Government had prepare
ZAGREB, March 23 (Hina) - Croatia is not facing a financial
disaster, Croatian Prime Minister Zlatko Matesa said during the
question time of the session of the Croatian National Sabor's House
of Counties on Tuesday.
The Prime Minister said the pension fund and the health insurance
fund were facing great problems because, he added the rights that
were granted to those two institutions were greater than their real
possibilities.
Matesa presented data that in the past four years the average annual
increase in salaries was 21 percent, while pensions annually
increased by 18 percent. According to him consensus was necessary
for solving those serious problems in the pension and health
insurance systems, namely an agreement according to which the
institutions are allowed to spend only available funds. Matesa said
that currently in Croatia there were more than one million retired
persons.
He added that the Government had prepared measures for solving
problems in pension and health systems.
Matesa told Bozidar Pankretic of the Croatian Peasants' Party
(HSS), who was interested in the PIK Vrbovec situation, that the
government, via the pension fund which has shares in particular
companies, could not be an owner of any company, including PIK
Vrbovec.
Matesa stressed that two processes were in procedure in PIK Vrbovec
- an investigation conducted by the financial police and the
Croatian Interior Ministry, and drawing of a plan which should make
PIK Vrbovec a strong company.
Slavko Kokovic of the HSS wondered about the situation in the
Dubrovacka Banka, and when will a comprehensive report on clearing
up the situation in the bank be submitted to the Sabor.
Matesa told Kokovic he could examine former reports on the
Dubrovacka Banka any time, reminding that the Dubrovacka Banka
problems were divided into several segments. One of them was the
financial rehabilitation of the bank and then bankruptcies of main
debtors. Legal procedures are being conducted against all debtors,
Matesa said and added that not even one kuna from taxpayers' money
will be spent on the rehabilitation of debtor companies.
He said the Croatian national Bank (HNB) was working on finding a
strategic partner who would financially reconstruct the Dubrovacka
Banka.
The HNB does not have the constitutional authority over the control
and business transactions of private banks, however the HNB will
try to ensure that the Zupanjska Banka starts with payments of
savings deposits to its all depositors, Matesa told Dragan Papac of
the ruling Croatian Democratic Union (HDZ).
Ivan Ninic of the Social Democratic party (SDP) wondered if the
Prime Minister, Croatian Interior Minister Ivan Penic, and head of
the Croatian Intelligence Service Tomislav Druzak, would resign
from their duties, considering the fact they were heading the
Privatisation Fund. Ninic said there was so many irregularities and
mismanagement in the wrong transformation and privatisation
models, adding the people believe it was a robbery of the century.
Matesa said he was never the president of the Privatisation Fund,
but the director of an agency which was dealing with the first part
of the transformation, and which was never selling anything.
There is nothing confidential about it, and I'm sure this goes for
my colleagues as well, Matesa said and added Ninic forgot to mention
Privatisation Fund Minister Milan Kovac, who was also the president
of the Croatian Privatisation Fund.
"No procedure is being conducted against any of those people you
have mentioned, and this is your assessment which is convenient
before the elections, however it is debatable how moral and ethical
the question is", Matesa said in response to Ninic.
Ratko Maric of the SDP wondered about details on incidents at the
Sunday soccer game Croatia-Hajduk and whether the police
established if the incidents started because they were initiated by
representatives of political parties.
Croatian Interior Minister Ivan Penic said the Interior Ministry
had no such information. The Minister said that in the 13th minute
of the game, bangal fire, which is prohibited in Croatia, has been
lit, that the security tried to move the persons who provoked the
incident, however they were prevented so the police had to
intervene.
Penic said seven police officers were lightly injured during the
incident.
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