UNION SAYS IT IS NOT TIME FOR PRIVATISATION OF INA AND CRO INSURANCE

ZAGREB, April 15 (Hina) - The Croatian Association of Unions (HUS) holds it is not the right time to privatise the Croatian oil company INA and Croatia Insurance company, because due to the current economic conditions, a price which would correlate to their true value would not be reached. HUS's branch union of oil and chemistry does not oppose the announced privatisation of 25 per cent of INA, but demands that INA's unions be able to participate in the drafting of a bill on the privatisation, HUS representative Maja Rilovic told a news conference on Thursday. Economy Minister Nenad Porges's refusal to grant an increase in the price of petroleum products could have negative repercussions on the company's rehabilitation, and thus, on the price it could reach in the privatisation, Rilovic said. The Union will request talks with Minister Porges, she added. HUS's branch union of employees in insurance companies asked that the Government reply whether Croatia Insurance would be speedily privatised. Croatia Insurance is mostly owned by the state (77.5 per cent of stock), and annual profits have risen from US$4.57 million in 1995 to 10.7 million dollars in 1998. The union holds that the decision on the privatisation of Croatia Insurance can only be brought by the Parliament, and requested union representatives to be included in the privatisation process so that the rights of employees can be protected. A value assessment of the insurance company will be completed by the end of the month. Th union expects the company will be assessed at between DM300 and 500 million. (hina) lml jn