CITY ADMINISTRATION WARNS OF ECONOMIC DIFFICULTIES IN VUKOVAR

( Editorial: --> 4794 ) VUKOVAR, Aug 20 (Hina) - Local officials have warned Vukovar's economic subjects are operating in very difficult conditions, and say the reason for this is the insufficient and slow process of reconstruction in the war-ravaged eastern Croatian city. There was also a shortage of capital in the crafts and trades sector and the major problem is the huge excess number of employees in several enterprises, it was said at Thursday's meeting of the Vukovar City Council administration. City administration member Zvonimir Ivanisevic told the meeting that Vukovar's economic subjects were in the phase of rehabilitation, but at the same time there were no long-term strategies for either their renewal or advancement in economic activities in the city area. Foreign investment is stalled in a large part because the process of privatisation has not begun. Investments to set in motion economic activities firstly have to accommodate the return of Croat displaced people and maintain the Serbs living in Vukovar, city administration officials concluded. They also emphasised that agriculture was one of the most important activities in the region. City administration member and Vupik management board president Tomislav Omrcenovic reported that the agricultural firm had invested about 120 million kuna (about $18.75 million) in the autumn and spring sowing process. He added that Vupik's total value following auditing was estimated at about 96.6 million German marks, and the firm employed about 1,100 people including 260 returnees. Vukovar City assembly chairman Marko Ceprnja said the city's council and administration were supported in their efforts to improve the local economy by the Vukovar-Srijem County leadership, which has offered needed assistance. (Hina) mbr 201500 MET aug 98