ZAGREB, June 25 (Hina) - The Croatian government on Monday entrusted the management boards and supervisory committees of some 15 companies whose exclusive or majority owner is the state with settling mutual claims and obligations,
after which the remaining unpaid claims will be covered with up to 700-million-kuna-worth bonds to be issued by the Croatian Privatisation Fund (HFP) on the domestic market. Public companies will have to undergo reorganisation. The state cannot be satisfied with their contribution considering their assets and the fact that they hold a monopoly in their respective business fields, Finance Minister Mato Crkvenac said. Deputy Prime Minister Slavko Linic said the situation in some 15 state companies could be described as "chaotic, lacking enterprise and order and burdened with enormous doubtful claims." The government assessed the performance of the companies' new management boards, w
ZAGREB, June 25 (Hina) - The Croatian government on Monday
entrusted the management boards and supervisory committees of some
15 companies whose exclusive or majority owner is the state with
settling mutual claims and obligations, after which the remaining
unpaid claims will be covered with up to 700-million-kuna-worth
bonds to be issued by the Croatian Privatisation Fund (HFP) on the
domestic market.
Public companies will have to undergo reorganisation. The state
cannot be satisfied with their contribution considering their
assets and the fact that they hold a monopoly in their respective
business fields, Finance Minister Mato Crkvenac said.
Deputy Prime Minister Slavko Linic said the situation in some 15
state companies could be described as "chaotic, lacking enterprise
and order and burdened with enormous doubtful claims."
The government assessed the performance of the companies' new
management boards, which were appointed only last year, as good,
given that they invested efforts to analyse the situation in their
companies and remove problems. However, this year they face clear
operating plans and many will find it difficult to pass the
government exam, Linic said entrusting competent ministries to at
least resolve organisational dilemmas in e.g. the Lottery, the
National Gazette, the Croatian Forest Management, the Croatian
Waters, etc.
Finance Minister Crkvenac announced and the government accepted a
framework model for the mutual settlement of debts by public
companies. He warned that public companies would not be financially
consolidated any more and that there would be no more state
subsidising either.
Under the government conclusions, the Croatian Railways (HZ) and
the Croatian Power Industry (HEP) will settle their debts by
selling their real assets, whereas the oil company INA has been
suggested to write off one half of its claims toward Kutina's
artificial fertiliser producer 'Petrokemija' and reschedule the
other half over a period of six years, with a one-year grace and a
Croatian National Bank (HNB) discount rate.
The government decided to resolve as soon as possible dilemmas
regarding price control and adopt solutions regarding the model of
oil pricing so that it could avoid worsening the situation in state
companies with its decisions.
Twelve of 17 public companies (HZ, HEP, Croatian Forest Management,
Jadrolinija shipping company, Croatian Post - HP, National
Gazette, Croatian Ratio Television - HRT, Croatian
Telecommunications - HT, INA, Plovput company, Croatian Airlines
and the insurance company Croatia osiguranje) last year realised an
income of 37 billion kuna and a net profit of only 951 million kuna,
which, nevertheless, is a 19 percent increase as against 1999.
HT accounts for the largest portion of the profit - 919.8 million
kuna, whereas other companies have earned far less profit in
comparison to previous years. Five companies incurred losses - HZ,
HEP, HP, INA and Croatia Airlines (1.8 billion kuna). Their
obligations toward suppliers amounted to 7.4 billion kuna and their
claims 8.2 billion kuna.
(hina) sb rml