LONDON, July 10 (Hina) - A leading international English language business newspaper, Financial Times, on Friday published 11 articles about Croatia, describing the political and economic situation in the country. The report's focus
is on the forthcoming parliamentary election and the economic situation. This winter's election can bring changes in authority, while Croatia's citizens, after long years of war, will go to the polls for the Sabor's House of Representatives with the solved security issue. Voters' assessment of the economic situation, however, will be crucial to the outcome of the election, Financial Times read. The future of the ruling party (the Croatian Democratic Union, HDZ), voters' support to which is on the decrease according to pre-election polls, will be decided by voting in cities and depends on whether the party will manage to re-instil conf
LONDON, July 10 (Hina) - A leading international English language
business newspaper, Financial Times, on Friday published 11
articles about Croatia, describing the political and economic
situation in the country.
The report's focus is on the forthcoming parliamentary election and
the economic situation.
This winter's election can bring changes in authority, while
Croatia's citizens, after long years of war, will go to the polls
for the Sabor's House of Representatives with the solved security
issue. Voters' assessment of the economic situation, however, will
be crucial to the outcome of the election, Financial Times read.
The future of the ruling party (the Croatian Democratic Union,
HDZ), voters' support to which is on the decrease according to pre-
election polls, will be decided by voting in cities and depends on
whether the party will manage to re-instil confidence in voters
disappointed with the economic crisis.
It will be also important for the vote whether leading opposition
parties will manage to agree on giving their joint list of
candidates or whether they will remain divided, as they are in the
nature of their interests, the paper read.
The international standing of Croatia has considerably been
strengthened thanks to the country's support to NATO in the war
against Yugoslavia. Conditions set by the international community
for Croatia, however, have remained unchanged. There is a danger
that positive impulses in Croatia's bids to approach the European
Union and NATO be wear out in case Croatia appears to be fullfilling
commitments with reservations, Financial Times quoted Western
diplomats as saying.
Most of Croats, both those who support the ruling HDZ and those who
are in favour of the opposition, believe that international
community is criticising Croatia too severely without
justification, the newspaper added.
The economy is hit by recession, Financial Times read adding that
recovery will ensue after the Government begins solving long-term
structural problems.
A deficit in the budget and the banking crisis forced the government
to ask a stand-by loan, worth 300 million dollars, from the
International Monetary Fund (IMF) to solve short-term problems.
Tourism, individually the most important economic branch in
Croatia, realised $ 2.7 billion-dollar foreign exchange earnings
in 1998. This year, according to assessments by Tourism Minister
Ivan Herak, tourism could suffer a loss of up to 1.4 billion in its
earnings.
The Kosovo crisis is not only a cause for a cut in incomes in the
tourism sector. Another reasons are a lack of versatility and some
defects in quality of tourist offers, the newspaper added.
A partial privatisation of the Croatian Telecommunications, by the
sale of 25 percent plus one share to a foreign bidder will de facto
enable de the foreign investor to impose its operational control.
In addition, the Croatian Telecommunications will enjoy a monopoly
by January 1 2003. The company made a $ 764-million last year,
Financial Times read adding that the investment house, Dresdner
Kleinwort Benson, that advises the Government about possible
investors, estimated that the country would get between 600 million
and one billion dollars by selling shares to the strategic bidder.
(hina) ms