Local Press Digest


ZAGREB, Apr 13, 2000


State power board HEP proposes to increase price of electricity by 25 percent from May.

I shall not resign, says central bank governor Marko Skreb, whose work will be debated by parliament this week.

Investigators of the UN war crimes tribunal start combing areas around Gospic for mass graves of Serb civilians.

Commentary - The recent lowering of mandatory reserve will not mean the banks will be ready to extend more loans to companies - they will probably opt to invest their funds into government bonds and hard currency.

The overhaul of Istarska and Cibalae banks via 10-year government bonds may in the long run bring most benefits to Zagrebacka Banka, if it takes over Cibalae.

The initial public offering of state telecom HT, due this year, will be a success because the market is still looking for new telecoms, says Moritz Gerke, deputy CEO of Deutsche Telekom, which has a 35 percent holding in HT.

Recent meeting of Croatian and Russian businessmen yielded few results. Croatia did not find solution to get repayment of Russian debt, while Russia interested in little else than Adriatic pipeline.


The new head of HIS intelligence Ozren Zunec has handed in his resignation after disagreement with other intelligence chiefs over reorganisation of the service, reflecting a wider conflict between government and President Stipe Mesic.

Tihomir Oreskovic, former military commander of the Gospic area, where UN war crimes investigators are now looking for mass graves, says he is unaware of any crimes against Serb civilians.

Following government decision to overhaul two banks via 10-year bonds bearing five percent interest: Taxpayers will have to pay 580 million German marks to banks in 2011.

Chronology of banking crisis: Fourteen banks and nine savings banks have collapsed in two years.

The tourist airfield on the island of Brac will be out of use this summer because of lack of funds to repair the runway.


The Hague tribunal is not trying the entire Croatian people but individuals, Archibishop Josip Bozanic tells believers in Split.

Istrian hotelier Plava Laguna may spur the recovery of Croatian tourism, says Jaime Devlahovich, head of Laguna's supervisory board. Luksic group, owned by Chilean businessman Androniko Luksic, has bought altogether 60 percent of the hotelier, with a view to acquiring another 16.3 percent from Privredna Banka.


The state employment agency lacks some 500 million kuna to launch a national employment program.

Croatia may expect up to 50,000 British guests this summer - only slightly less then in 1989 - as it stopped being perceived as a high-risk zone.


We want a parliamentary system in which the president would no longer control the armed forces, but we shall now have to find a compromise solution as President Mesic does not want to give up all his authority, says Defense Minister Jozo Rados.

Croatian retailers, faced with growing foreign competition in major cities, are looking for ways to survive.


Commentary: Prime Minister Ivica Racan and President Stipe Mesic clash over reorganization of intelligence services, deepening their conflict over the planned reduction of presidential authority. If prolonged, the conflict could result in a major power crisis.

Croatia will have to chose between a strong premier and a strong president, says U.S. ambassador William Montgomery. It also has to draft a clear program of economic reforms to get substantial foreign aid.

Local and central authorities, including President Franjo Tudjman and Defence Minister Gojko Susak, both of whom are now dead, knew about murders of Serb civilians in Gospic in 1991.

New management of Croatian state television HRT has inherited disastrous financial situation and will demand an increase of monthly TV subscription to shore up its finances.

Croatia's Roman Catholic Church should apologize to Jews for crimes in Independent State of Croatia (in World War Two), says Ognjen Kraus, head of the Jewish community in Zagreb.

In the last ten weeks the government has arrested or launched investigation against five tycoons who build their empires in 1990s.

Original article