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DIRECT FOREIGN INVESTMENTS IN CROATIA USD2.5 BILLION

ZAGREB, Oct 19 (Hina) - Foreign investments into Croatia have increased in recent times, and direct foreign investments between 1993 and the end of June 1999 reached US$2.5 billion. By year's end Croatia could register the record annual amount of the entire foreign investments figure thanks to the recent sale of 35 percent of Croatian Telecom shares, and the impending sale of share-packages of Rijecka Bank, Splitska Bank, Privredna Banka Zagreb, and insurance company Croatia Osiguranje. Croatia is among three European countries in transition which between 1996 and 1998 received the most foreign investments per citizen, Boris Vujcic, head of the Research Directorate at the Croatian National Bank, said on Tuesday, adding he believed the trend would continue. The majority of investments into Croatia's economy are equity investments, which reached US$1.5 billion between 1993 and 1999. Data show
ZAGREB, Oct 19 (Hina) - Foreign investments into Croatia have increased in recent times, and direct foreign investments between 1993 and the end of June 1999 reached US$2.5 billion. By year's end Croatia could register the record annual amount of the entire foreign investments figure thanks to the recent sale of 35 percent of Croatian Telecom shares, and the impending sale of share-packages of Rijecka Bank, Splitska Bank, Privredna Banka Zagreb, and insurance company Croatia Osiguranje. Croatia is among three European countries in transition which between 1996 and 1998 received the most foreign investments per citizen, Boris Vujcic, head of the Research Directorate at the Croatian National Bank, said on Tuesday, adding he believed the trend would continue. The majority of investments into Croatia's economy are equity investments, which reached US$1.5 billion between 1993 and 1999. Data show that between 1993 and the end of June 1999, United States capital was the most present on the Croatian market, with US$964.7 million, which accounts for almost 40 percent of all direct foreign investments into Croatian economy. The U.S. is followed by Austria with US$613.7 million, or 25 percent, and Switzerland with US$102,2 million, 4.1 percent of the entire figure. Other countries' share does not exceed four percent of all investments. Polls among foreign investors show the basic factors affecting the influx of foreign capital are a stable political environment and a stable macroeconomic situation, a country's involvement in international integration, the level of corruption, and the acceptance of foreigners on local level. Analysts point out Croatia is among a few countries in transition without a law on the stimulation of foreign investments. (hina) ha

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