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FINAL BILL ON PRIVATISATION OF CRO TELECOMMUNICATIONS PRESENTED

ZAGREB, June 10 (Hina) - The Croatian National Sabor's House of Representatives continued its 41st session on Thursday. After a brief discussion, the MPs established the agenda, which includes some 40 items, to be discussed during the next three weeks. The most important ones are a draft budgetary revision for 1999 and the final bill on the privatisation of the Croatian Telecommunications (HT), which is in the second reading. Opening a discussion on the privatisation of the HT on behalf of the sponsor - the Government - Finance Minister Borislav Skegro said the differences between the bill in the first reading and its final draft reflected objections presented in discussions in both parliamentary houses. The Government has integrated those proposals into the final bill trying not to go against the basic principle of the privatisation of the HT, Skegro said. According to the final bill, the stat
ZAGREB, June 10 (Hina) - The Croatian National Sabor's House of Representatives continued its 41st session on Thursday. After a brief discussion, the MPs established the agenda, which includes some 40 items, to be discussed during the next three weeks. The most important ones are a draft budgetary revision for 1999 and the final bill on the privatisation of the Croatian Telecommunications (HT), which is in the second reading. Opening a discussion on the privatisation of the HT on behalf of the sponsor - the Government - Finance Minister Borislav Skegro said the differences between the bill in the first reading and its final draft reflected objections presented in discussions in both parliamentary houses. The Government has integrated those proposals into the final bill trying not to go against the basic principle of the privatisation of the HT, Skegro said. According to the final bill, the state would have 30 per cent of shares in HT's property structure. Five per cent of shares would be allocated to Croatian soldiers and members of their families free of charge. The current and former HT employees would be offered five per cent of shares under favourable terms. Skegro said the Government would accept amendments of the House of Counties for the percentage of shares intended for soldiers and former and current employees to be increased from five to seven per cent. At least 25 per cent + one share would be sold to a strategic investor. The most important change in the final bill is the fact that in the second privatisation stage, which is to take place next year in the form of a public bid, the Government would offer at least 20 per cent of shares for sale with Croatian citizens having the advantage over other bidders and enjoying more favourable terms. Summarising the portions intended for individual categories and the strategic investor, Skegro said what remained was 36 per cent of shares. Therefore, objections that the bill does not protect Croatia's state interests are not correct, he added. According to the bill, the state's share in the HT in the process of recapitalisation cannot be reduced below 30 per cent without consent from the Sabor, Skegro said. Income from the sale of HT shares and dividends will go into the state budget and be used for economic development, Skegro said, adding not one lipa would be used for public spending. (hina) rml

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