CROATIAN GOVT ON RESTRUCTURING OF PUBLIC COMPANIES, SEA FISHERIES

ZAGREB, July 15 (Hina) - Yesterday's session of the Croatian government, chaired by Prime Minister Nikica Valentic, addressed the problems of restructuring of public companies and measures for improving fishing trade. Deputy Prime Minister Borislav Skegro said that the restructuring of the public sector was the basis for further talks with the International Monetary Fund and the World Bank for Reconstruction and Development. Prime Minister Valentic said that nine state-owned companies and the INA oil company accounted for 40 percent of the Croatian economy and that after reconstruction they would be privatized. The Government also passed a decree to amend the bill on farm price support. In this context, fishermen will be granted price subsidies for diesel fuel at a rate of 60 lipa per litre and for tinned fish. Valentic said the Government introduced price subsidies because excise tax had had a negative effect on fishing trade. Subsidies will be in force until 31 October this year when a Sea Fisheries Act is expected to be adopted. Valentic added that this act and some other measures would help restore order in the entire sector. Last week, Croatian fishermen blocked ports in protest against the imposition of excise tax which stripped them of benefits when buying fuel. 151222 MET jul 94