GOVERNMENT STARTS RESTRUCTURING LOSS-MAKING COMPANIES

ZAGREB, March 1 (Hina) - The implementation of the second, "restructuring" stage of the Government's stabilisation programme is to begin with four loss-making companies, the Government decided at today's session. The companies in question are the Sibenik-based Light Metals Factory (TLM) and the Electrodes and Ferroalloys Factory, as well as the Dalmacija Factory in Dugi Rat and the Tupljak coalmine in Istria. The actual restructuring will be entrusted to the Croatian Electric Utility (HEP) which has a substantial interest in these companies as they use a lot of power, Prime Minister, Nikica Valentic, said. HEP is to earmark 400 million kunas for the restructuring of these companies. A quarter of these funds will be allotted to paying benefits to redundant workers. Premier Valentic announced the impending restructuring of other big loss-making firms, such as the Sisak Ironworks (which owes 700 million kunas), the shipbuilding sector (which owes 5 billion kunas), the agriculture (two billion kunas) and companies based in the occupied areas (two billion kunas). Deputy Prime Minister, Borislav Skegro, said failure to implement the restructuring programme would undermine the 16-month monetary and price stability. (hina) jn as sd 011643 MET mar 95