Croatia Privatizing State Insurance Company Croatia Osiguranje and Croatian Postal Bank (HPB)
Finance Minister Slavko Linic reiterated that Croatia plans to sell significant shares in the leading insurer Croatia Osiguranje (CO). Croatia will also be privatizing their shares in the Croatian Postal Bank (HPB), as the Government moves to slash the budget gap this year.
The state controls approximately 80 percent in Croatia Osiguranje and Linic said the idea was to keep 25 percent plus one share and offer the remaining stock in a public tender. It is estimated that the privatization of CO will be realized by the end of the year and the HPB after its recapitalization. It is estimated that the sale of CO and the HPB will reach approximately €265 Million and €100 Million, respectively.
“We don’t think that revenues from privatization will salvage the budget, even though one should send a message that privatization is in the function of reducing our foreign debt and covering this year’s deficit, because that is what rating agencies and creditors will appreciate,” said Linic.
“Privatization is probably the only real way for the development of the leading Croatian insurer, but considering the enormous value of Croatia Osiguranje the whole process should be transparent and well prepared”, stated Zdravko Zrinušić, CEO of Croatia Insurance.