The state will acquire ownership of approximately 100 companies through pre-bankruptcy settlements, and the write-offs of claims will reduce state assets by up to one billion kuna, said Mladen Pejnović, head of the State Office for State Property Management, at the scientific-professional conference Croatian Money Market in Opatija today.
On the second and final day of the conference, the discussions among about 100 participants focused on the prospects of the capital market in Croatia and fiscal consolidation through privatization and the capital market.
Pejnović stated that there is no discussion about privatization for companies of strategic importance (e.g., Hrvatske ceste), while for those of developmental importance (e.g., ACI), options for restructuring, recapitalization, or privatization are being considered. The sale of companies in which the state does not have a controlling stake is also being considered in the next two years, as well as the privatization of companies in which the state holds more than 25 percent ownership in the next three years.
He noted that part of the portfolio could also be resolved through employee stock ownership (ESOP) and that significant discounts should be offered to employees. He mentioned that the law, which will be introduced this summer, discusses employee ownership of up to 25 percent of the portfolio and also mentioned the distribution of free shares, such as those for veterans.
Željko Lovrinčević from the Economic Institute Zagreb stated that it would be beneficial for the privatization process to be guided by the idea of strengthening companies rather than strengthening the budget, i.e., that the privatization of state assets should not arise from closing the fiscal deficit but from a model of recapitalization and development.
