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LOWER HOUSE DISCUSSES ACTIVITIES OF STATE PRIVATISATION FUND

ZAGREB, Nov 20 (Hina) - In comparison with other countries in +transition, Croatia has achieved considerable results in the +privatisation process, said Dragan Kovacevic, chairman of the +Croatian Privatisation Fund's (HFP) Supervisory Board, on Friday.+ The privatisation process in Croatia has entered its final stage, +said Kovacevic presenting a Report on HFP's Performance in 1997 to +the Sabor's (parliament) House of Representatives.+ The process of transformation and privatisation in Croatia to date +should be assessed on the basis of facts and not individual cases of +misuse. The HFP and the state should not be identified with a "small +group of economic gamblers, amateurs and very poor entrepreneurs", +said Kovacevic adding "We will insist on clarifying all +controversial cases of transformation activities".+ "In some cases the concentration of capital was not accompanied +either by
ZAGREB, Nov 20 (Hina) - In comparison with other countries in transition, Croatia has achieved considerable results in the privatisation process, said Dragan Kovacevic, chairman of the Croatian Privatisation Fund's (HFP) Supervisory Board, on Friday. The privatisation process in Croatia has entered its final stage, said Kovacevic presenting a Report on HFP's Performance in 1997 to the Sabor's (parliament) House of Representatives. The process of transformation and privatisation in Croatia to date should be assessed on the basis of facts and not individual cases of misuse. The HFP and the state should not be identified with a "small group of economic gamblers, amateurs and very poor entrepreneurs", said Kovacevic adding "We will insist on clarifying all controversial cases of transformation activities". "In some cases the concentration of capital was not accompanied either by good entrepreneurs or good programmes. The privatisation in such cases ended in the destruction of production, laying off of workers and the sale of assets. We certainly condemn this", he said. Nevertheless, there are some positive examples in the development of production, opening of new plants and creation of news jobs, he added. Since 1992, 2,900 out of a total of about 3,000 formerly socially- owned companies have submitted requests for autonomous transformation. Their value has been estimated at around US$13 billion. Shares amounting to US$242 million from the HFP portfolio have been sold through public bidding, Kovacevic reported. Shares amounting to about US$5.3 billion were bought under more favourable terms by Croatian citizens - employees and former employees. An additional US$1.9 billion was transferred to Croatian pension funds and another US$3.9 billion is in the HFP portfolio. About one million people - 700,000 small shareholders and 230,000 Homeland war victims - are participating in the privatisation process. Last year, the HFP received about 700 requests for privatisation supervision in 400 companies. The privatisation procedure was annulled in nine cases, while 94 companies saw the annulment of "certain activities" and orders to rectify them, Kovacevic reported stressing the importance of the judiciary in resolving the already filed suits. The HFP Supervisory Board chairman called on all responsible officials to refrain from statements which discourage foreign investors from investing in Croatia. Such statements "threaten both the private entrepreneurship in Croatia as well as democratic tendencies, they destabilise the state and are aimed at presenting Croatia in a different light". (hina) jn rml/ab

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