CROATIAN PRIVATISATION FUND, COSUN COMPANY SIGN NEW CONTRACT

ZAGREB, July 12 (Hina) - The Croatian Privatisation Fund (HFP) and the Dutch company Cosun - the majority owner of the Sugar Factory in Virovitica - on Monday signed a new contract, which, among other things, regulates the payment of some US$9.32 million which the company owed to sugar beet producers for last year's yields. According to the new contract, the HFP has sold an additional package of 27 per cent of shares, worth two million German marks, to Cosun, making the Dutch company the owner of 78 per cent of shares of the Virovitica Sugar Factory. The contract was signed by HFP president Stipe Hrkac and a representative for the Dutch company, Henry Wijnaendts. According to Hrkac, payments to the factory's contract farmers will start immediately after the signing of the contract. The company will pay the first US$2.5 million onto its account in the Privredna Banka Zagreb, while the rest of the money should be paid within the next 20 days. The money to be paid to contract farmers is part of the US$17.1 million Cosun had set aside for the recapitalisation of the sugar factory. After it settles its debt with the farmers, the company will use the remaining US$7.8 million for its future activities, a representative for Cosun in Croatia, Branko Salaj, said. (hina) rml