ZAGREB, Oct 7 (Hina) - Croatian Premier Zlatko Matesa said on Thursday the recent sale of 35 percent of Croatian Telecom shares to Deutsche Telekom had very significant economic and political implications for Croatia. "That
transaction makes it possible to fill this year's budget entirely. This means all its capital parts, all transfers referring to the economy, roads, the building and reconstruction of schools," the Premier told the press. Matesa emphasised the US$850 million sale was an incentive to economic development. "Nobody invests US$850 million in a country unless they believe in its political and economic stability," Matesa said, pointing out the Deutsche Telekom investment was also an indirect assessment of the state of Croatia and its economy. "It is a clear sign to foreign investors that Croatia should be invested in, that it is worthwhile to invest in Croatia," he added. The Premi
ZAGREB, Oct 7 (Hina) - Croatian Premier Zlatko Matesa said on
Thursday the recent sale of 35 percent of Croatian Telecom shares to
Deutsche Telekom had very significant economic and political
implications for Croatia.
"That transaction makes it possible to fill this year's budget
entirely. This means all its capital parts, all transfers referring
to the economy, roads, the building and reconstruction of schools,"
the Premier told the press.
Matesa emphasised the US$850 million sale was an incentive to
economic development.
"Nobody invests US$850 million in a country unless they believe in
its political and economic stability," Matesa said, pointing out
the Deutsche Telekom investment was also an indirect assessment of
the state of Croatia and its economy.
"It is a clear sign to foreign investors that Croatia should be
invested in, that it is worthwhile to invest in Croatia," he added.
The Premier said the Deutsche Telekom investment had also set
certain standards for future foreign investments in Croatia, such
as major privatisation projects in the banking sector, insurance,
etc.
During the sale of Croatian Telekom's shares, the government
enjoyed the evident support, instructions, and personal engagement
of Croatian President Franjo Tudjman. "If there was anyone who
significantly contributed to such a successful transaction, then
it was certainly the President of the Republic," Matesa said.
The Premier denied that Deutsche Telekom would have the guaranteed
securing of a majority share in Croatian Telekom. He reminded that
the Law on the Privatisation of the company was very clear.
The sale of 35 percent of the company's shares marked the end of the
first stage of its privatisation. The second includes the offer of
shares on the market, which is expected to take place next year.
The privatisation law stipulates that part of the company's shares
be reserved for former and current employees and soldiers, while 30
percent will remain Croatia's. "what will happen to the last 30
percent is in the hands of the Croatian National Parliament,"
Matesa said.
(hina) ha jn