U.S. BUSINESSMEN MEET FOR TALKS WITH CROATIAN GOVERNMENT

ZAGREB, July 13 (Hina) - The US government and business delegation headed by Commerce Secretary Mickey Kantor met in Zagreb on Saturday with Croatian government officials for talks on the Croatian economy and prospects for economic cooperation between the two countries. Deputy Prime Minister Borislav Skegro informed the guests about economic achievements, stressing that Croatia was faced with ensuring sustained growth within the framework of macroeconomic stability. Finance Minister Bozo Prka spoke of the tax reform which resulted in the lowest income tax in Europe of 25 per cent. Dividends were not liable to taxation and all financial issues with the Paris and London Clubs had been settled, he said. National Bank of Croatia Deputy Governor Zdravko Rogic spoke of financial and macroeconomic reforms which led to the stability of the domestic currency. He said that the reform of the banking system was under way. Assistant Privatization Minister Damir Ostovic informed the American guests about the process of ownership transformation and privatization, with a special emphasis on the privatization law which would introduce vaucher privatization. Kantor described Croatian achievements in monetary and fiscal policies as impressive and stimulative for cooperation and investement. American businessmen were particularly interested in the possibilities of their participation in the privatization of the public sector. Reconstruction and Development Minister Jure Radic spoke of the reconstruction of war-ravaged areas, saying that Croatia suffered direct war damage to the amount of USD 27 billion. Tourism Minister Niko Bulic said that Croatia's prewar tourism revenues totalled up to USD 4 billion and that it wanted to become the leading tourist country in the Mediterranean. Croatian and US businessmen also discussed opportunities for investment in the infrastructure, telecommunications, energy, tranport, tourism and the financial sector. (hina) vm 132006 MET jul 96