ECONOMY MINISTER, SIBENIK BUSINESSMEN DISCUSS FATE OF LOSS-MAKERS

SIBENIK, March 29 (Hina) - The Croatian Government would settle all its debts to companies by the end of July, Economy Minister Davor Stern pledged Friday at a problem-solving session with Sibenik businessmen. Also present were Sibenik County Prefect Pasko Bubalo, Assistant Defence Minister Josip Juras, Deputy President of the Croatian Privatization Fund, Miljeko Weis and General Director of the Croatian Electricity Board, Damir Begovic. The main item on the agenda was the crisis in the Sibenik- based Light Metals Factory, Croatia's only manufacturer of aluminum. The factory, which employs 3,000 workers, operates at a loss and owes DM 220 million. The meeting approved a rehabilitation project proposed by an expert team appointed by the Croatian Electricity Board (HEP) as one of the factory's major creditors. The project advocates the classical solution of converting claims into stakes. The meeting discussed the closing down of the Sibenik-based Electrodes and Ferrous Alloys Factory, focusing particularly on preparations for pulling down the buildings and the settlement of creditors' claims, which amount to DM 63 million. Another problem discussed at the meeting was the Vodice- based "Vodicanka", a major purveyor to the Croatian army. Owing to the company's inability to collect a 26-million kuna debt from the Government, the Defence Ministry and other government institutions, workers have not been paid for five years, "Vodicanka" managers complained. Juras pledged prompt action on the part of the Government to "deal with the issue" but hinted that Vodicanka's loss-making record was not due solely to the Government's default but also to poor management. (hina) as 292216 MET mar 96