CEI STATES WILL RECEIVE ABOUT US14 BILLION OF FOREIGN INVESTMENTS IN 1998

ZAGREB, Nov 18 (Hina) - In 1997, direct foreign investments in Central European Initiative (CEI) countries, not including Italy and Austria, amounted to three billion dollars and will this year amount to between 13 and 14 billion, said Kalman Kalotay, a representative of the United Nations Commission on Trade and Development (UNCTAD) in Zagreb on Wednesday. Kalotay, who is one of the authors of an international report on direct foreign investments, spoke at a round table held as part of CEI's first economic forum, which was opened in Croatia's capital today. In 1997, Poland received direct foreign investments amounting to five billion dollars, Hungary received US$1.9 billion, the Czech Republic US$1.4 and Croatia US$348 million. Kalotay expressed hope that the trend of increase of direct foreign investments into CEI countries would continue. The United States and Germany are the leading investors in CEI countries. The US invests most in Croatia, Poland and the Ukraine, while Germany invests most in Bulgaria, the Czech Republic and Hungary. According to data from the Croatian National Bank (HNB) on this year's foreign investments, US$544.21 million were invested in Croatia in the first half of 1998, which is 275 per cent more than in the same period of 1997. Investors from the US contributed with 82.9 per cent of the overall value of foreign investments in Croatia. The leading individual investor from the US was the company Bankers Trust, which directed its investments into Croatia's pharmaceutical and food processing industry, banking and tourism. The US is followed by Austria with a 7.9% and Germany with a 2.54% share in foreign investments. As much as 80% of investments went into the pharmaceutical sector, which is followed by the banking sector (more than 7%) and power production and supply (7.27%). (hina) jn rml