UPPER HOUSE BEGINS DEBATE ON CRO TELECOMMUNICATIONS PRIVATISATION

ZAGREB, May 25 (Hina) - The privatisation of the Croatian Telecommunications (HT) company is the first privatisation of a public company and is, according to value, probably the greatest privatisation endeavour in Croatia, Finance Minister Borislav Skegro told the House of Counties on Tuesday presenting a bill on HT's privatisation. According to the bill, 30 percent of HT's shares would remain permanently owned by the state, thereby protecting national interests, while a dividend from the percentage would be directed into the pension system. Five percent of the company's shares would be offered to the company's former and current employees, with greater benefits than to other Croatian citizens, while another five percent would be given free to Croatian veterans. A strategic investor would be entitled to 25 percent plus one share, whereas the remaining 35 percent, minus one share, would be offered to all Croatian citizens who would be able to purchase them with discounts. Skegro said the biggest number of shares will be on public offer, with the intention of having Croatian citizens buy the majority. One of the basic reasons why the HT has been put into privatisation is the company's preparations for competition and liberalisation, the finance minister said. Also expected are better and cheaper services, and there are several macroeconomic reasons as well, including international capital inflow into Croatia, direct foreign investments, and the development of the domestic capital market. (hina) ha jn