CROATIAN LOWER HOUSE PASSES FREE TRADE ZONES ACT

ZAGREB, May 17 (Hina) - The Croatian Parliament's House of Representatives on Friday adopted a Bankruptcy Act which would come into force as of 1 January 1997. The House also passed acts on credit operations with foreign countries, free trade zones, amendments to the Maritime Code and supported several bills in the first reading. The Bankruptcy Act says that bankruptcy procedure can be initiated due to insolvency and overindebtedness. The role of courts will be limited to supervision while all strategic decisions will be made by creditors. The Foreign Credit Operations Act liberalizes conditions under which domestic companies, local self-government units and other legal persons can conclude contracts on credit arrangements with foreign countries. The Free Trade Zones Act sets out requirements for establishment of a free trade zone on the basis of a concession from the Croatian government. It allows production but rules out retail trade and residence in a trade zone. A zone can be set up in sea and river ports, alongside an international road route and in other areas in which there are conditions for the work of a trade zone. Amendments to the Maritime Code simplify procedure for issuing concessions for certain activities during tourist seasons, such as mobile catering establishments, kiosks and sports equipment rental. (hina) vm jn 171926 MET may 96