Another 36 Privatisations Planned

After operation ‘Maestro’, the media are opening old wounds of privatisation and the government decided to sell 20% of HT shares.

Although the Croatian Privatisation Fund has continued to function and currently has two open tenders for the sale of Bizovacke toplice d.d., Bizovac and Trimota d.d., Imotski there are still 36 other companies on the Fund’s list of planned privatisations. In these companies the state owns shares of at least 48.7 percent. 

New privatisations by the end of the year 

After completion of the privatisation of a metallurgy complex: Split Ironworks, TLM Sibenik and Sisak Rolling Mill, following are the privatisation of Uljanik, said Grga Ivezic, president of the Croatian Privatisation Fund at the presentation of reforms as part of the PAL programme in the World Bank Office in Zagreb, Banka.hr reports.

Ivezic announced the privatisations several days before operation “Maestro” (in which six Privatisation Fund officials were arrested on suspicion of embezzlement) and on the same day of the operation Prime Minister Ivo Sanader announced that the Fund would be closed down. The prime minister suggested that the Fund’s privatisation tasks be transferred to the Central State Office for Property Management or that a property agency be established.

After operation Maestro, the media has opened new wounds in the privatisation and the government made a decision on the sale of 20 percent of shares of the Croatian Telecom (HT) at the Zagreb and London stock exchanges, in which Croatian citizens will have the right to buy first.

Part of funds from privatisation is in the Croatian Homeland War Soldiers’ Fund 

The Croatian Homeland War Soldiers’ Fund (HB Fund) managed by Erste-invest d.o.o., began functioning in 2005 when the Croatian government made a decision to transfer seven percent of HT shares to the HB Fund, which was the Fund’s starting capital. Apart from these shares, seven percent of the Croatian oil company Ina’s shares were also transferred to the HB Fund. Specifically, in the case of HT, that would be 5,732,197 shares, and 700,000 shares of Ina.

The shares of other companies should also be transferred to the HB Fund, but only after the parliament adopts a special law on privatisation for each one of the companies, which include the HEP utility company, Croatian Posts, Croatian Forests, Croatian Railways, Croatian Roads, Croatian Highways and Croatian Radio and Television. After the sale, seven percent of the amount should be transferred to the HB Fund.