GOVT DISCUSSES REHABILITATION OF "GEOTEHNIKA" COMPANY

ZAGREB, April (Hina) - The Croatian Government on Thursday adopted a plan of financial consolidation and rehabilitation of "Geotehnika", a company for the performance of special geo- technical works. Reconstruction and Development Minister Jure Radic informed the session that the company was facing difficulties because of the inability to collect its claims in foreign countries (mainly in Sudan). According to the consolidation plan, the Government will take over the company's debts and claims. On the other hand, to settle its obligations towards the Zagrebacka Banka, the company will sold one of its business buildings. Prime Minister Zlatko Matesa entrusted the Ministry of Foreign Affairs to try to solve the problem of Croatia's claims in Sudan as soon as possible. Economy Minister Nenad Porges told the session that the management of Hungary's "Borsodchem" company had given up the purchase of the "Adriavinil" company in early April. A letter sent by the Hungarian company explicitly said that one of the main reasons for giving up the deal was "the atmosphere of animosity" among the local community, Porges said. "Borsodchem" had responded to an offer of sale of 81.7 per cent of "Adriavinil", which was supported by "Adriavinil" workers interested in the continuation of production. However, the local community opposed the deal, organising a referendum on closing down the company, which failed because only 31 per cent of voters took part in it, Porges said. Prime Minister Matesa warned of Croatia's increasingly negative image among foreign investors. (hina) rml