ZAGREB, April 8 (Hina) - The London-based re-insurance company Lloyd has included the eastern Adriatic coast, including Croatia's coast from north to south, into a zone of war risk, Croatian Economy Minister Nenad Porges informed
members of the Government on Thursday. At the moment, the company has not increased insurance premiums, but its move still could cause immeasurable damage, Porges said. Prime Minister Zlatko Matesa also reiterated that NATO's operation in Yugoslavia had already caused serious damage to Croatia's economy. According to him, some contracts which had been previously agreed by the Rijeka shipyard "Viktor Lenac" (worth US$12.5 million) have been cancelled. "Similar things could be expected in some other shipyards. There will be problems with ports, shipping companies, maritime transport, agents", he added. The Prime Minister informed the Government of the intention of some partners to
ZAGREB, April 8 (Hina) - The London-based re-insurance company
Lloyd has included the eastern Adriatic coast, including Croatia's
coast from north to south, into a zone of war risk, Croatian Economy
Minister Nenad Porges informed members of the Government on
Thursday.
At the moment, the company has not increased insurance premiums,
but its move still could cause immeasurable damage, Porges said.
Prime Minister Zlatko Matesa also reiterated that NATO's operation
in Yugoslavia had already caused serious damage to Croatia's
economy. According to him, some contracts which had been previously
agreed by the Rijeka shipyard "Viktor Lenac" (worth US$12.5
million) have been cancelled.
"Similar things could be expected in some other shipyards. There
will be problems with ports, shipping companies, maritime
transport, agents", he added.
The Prime Minister informed the Government of the intention of some
partners to re-direct their freights from the Rijeka port to the
port of Koper (Slovenia), wondering why Koper was considered less
dangerous than Rijeka.
The Koper port, also located on the eastern Adriatic coast, is some
39 miles north-west of the Rijeka port.
Commenting on the move by the Lloyd company, the Prime Minister
entrusted Croatian diplomacy with informing the British Government
that "such hasty moves could be fatal for Croatia".
In a statement for the press after the session, Porges said the
Government, in order to prevent further damage in the Lloyd case,
had decided to continue its diplomatic offensive, primarily in
London. Everything possible will be done to prevent further damage,
Porges said, adding he would send a letter to the clients who had
cancelled the contracts with "Viktor Lenac".
Asked about the consequences of NATO's operation for Croatia's
economy, especially for tourism, Porges said there would be
negative effects because, for example, of the perception of the
closeness of the southern Croatian town Dubrovnik and Kosovo.
"Nevertheless, mid-term gains could be far larger than short-term
damage or the slowing down of the desired dynamics of economic
development", he said, expressing hope that damage would be short-
term and that NATO intended to end its operation as soon as
possible.
The Government will discuss tourism under the current
circumstances at one of its next sessions.
(hina) jn rml