UNPAID ORDERS FOR TRANSFERS DROP FOR SECOND TIME THIS YEAR

ZAGREB, Oct 18 (Hina) - Unpaid orders for transfers as recorded at the Croatian Money Transfers Bureau in August dropped in comparison to the month before, a feat previously registered this year only in May. Legal entities' unpaid orders for transfers in August amounted to US$3.28 billion, which was US$55.28 million, i.e. 1.7 percent less than in July. At the same time, the number of frozen legal entities' accounts rose by 1.6 percent, to 28,870. Since August 1998, the sum of orders for transfers which could not be paid due to lack of funds doubled, while the number of frozen legal entities' accounts rose by 11.3 percent. Retail and wholesale trade have been facing the biggest problems in paying orders for transfers, accounting for 38.5 percent of the entire figure of reported unpaid orders. Amounts exceeding US$214 million have also been reported in the food and drink industry, agriculture, and the construction industry. Almost half of the entire number of Croatia's employed work in companies and institutions which have had their accounts frozen for over a year now. Legal entities which are entirely privately-owned have the most difficulty in maintaining current liquidity. The percentage of frozen legal entities' accounts in the state sector is 1.6, with US$214 million of unsettled transfer orders. (hina) ha jn