STATE PROPERTY: Croatia to Sell State Shares in Tourism Companies to Close Budgetary Gaps
VG Intelligence Weekly Issue 001, April 11 2016
On 4 April, after attending the “CIRAZ 2016: Harnessing Innovation to Drive Economic Growth – The Ron Brown Legacy” conference in Dubrovnik, Prime Minister (PM) Tihomir Oreskovic told the media that the Maestral hotels near Dubrovnik should be sold to private investors and that the state should not be in the hotel business. “I will see how we can attract potential investors in this area as soon as possible”, added Oreskovic. This statement confirms the government’s intention to sell (i.e. privatise) non-financial state assets in order to cover budgetary gaps.
Prior to the Sabor’s (i.e. parliament) ratification of the 2016 State Budget (21 March), Oreskovic stated that one of the five key reform areas was activating approximately €500 billion in unused state-owned assets. Oreskovic reminded that the State Property Management Administration (DUUDI) manages state property valued at €30 billion, including 1,400-1,500 real estate properties, unused land, and some 1,300 companies in the public sector.
In its explanation of the 2016 budget, the government further elaborated that it planned to obtain more revenue this year by selling non-financial assets, as well as through the sale of €213 million worth of state shares in companies (see LPJ 172)…