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Branko Roglić, owner of the Orbico Group The problem is not debt, but the fact Croatia cannot stop accumulating it

Vukovar harbour The greatest advantage of Vukovar harbour is the Danube providing safe navigability 365 days a year

Croatian Bank for Reconstruction and Development Positive, but lower income and higher expenditure in 2010

INTERVIEW

EXIT TO THE CRISIS

FINANCES

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Croatian Business & Finance Weekly Established in 1953 Monday / 26th April / 2011 Year IV / No 0150 www.privredni.hr

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pvinternational pv international C R O A T I A N

C H A M B E R

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E C O N O M Y

30 of 35 negotiating chapters closed

Croatian EU accession: finally “immense progress” Viktor Orban complained that Hungarians are hitting the wall when it comes to the Croatian file shares with Croatia the hope that the month of June will see the end of talks, said Martony decisively. Fule only changed his choice of words, referring to the overly cautious official paper, the final statement in which immense progress in praised.

Lada Stipić-Niseteo ive and a half years or 2,125 days after the night of the official opening, Croatian accession talks have managed, somehow, to limp their way to thirty closed chapters. The European Commission has finally started to admit that the prerequisites for opening and closing of chapters, or for gaining a “ticket to enter” the EU, are far stricter than before. At the same time, they are

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Janos Martony, chief of the Hungarian diplomacy mentioned “the feeling of a job done” swearing they will not loosen them since in the accession process, so disliked by the EU, credibility can only be secured if they are adhered to completely. At the press conference of the Intergovernmental Conference, and after the closing of Chapter 11 (Agriculture and Rural Development) and Chapter 22 (Regional Policy and Coordination of Structural Instruments), which determine mutual financial calculations for three

quarters of the EU budget, the amounts which agriculture and cohesive policy consume, there was a noticeable difference in the accession of the presiding country, Hungary, and the European Commission or its first politician respectively. Hungarians hit the wall The reservations of the Enlargement Commissioner, Stefan Füle, are not shared by operatives in the Enlargement Direc-

torate, who are often frustrated by the Commissioner’s reluctance to push the file. Of course, it is also not know whether the Hungarian Prime Minister, Viktor Orban, was talking about the Czech diplomat when he complained that the Hungarians are hitting a wall when it comes to the Croatia file. Janos Martony, chief of the Hungarian diplomacy mentioned “the feeling of a job done,” which he wishes to close in June. The Presidency

Only five to go It is estimated that the next Intergovernmental Conference will be held in May in order to close Fisheries and perhaps even Market Competition. The second one should be held on June 21, when the Chapters covering Finance and Other Provisions, Other Issues (not negotiated) and Legislation should be closed. The Chapter on Finance and Other Provisions will close only when the date for EU accession is set. Considering the above unfulfilled tasks, it is unlikely Croatia can do much during the next two months, except convince the EU it is on the right path towards issuing verdicts regarding cases related to corruption. Another critical report from Transparency International does not go into its favour. The package contains requirements to process war crimes and continue the process of the return of refugees.


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Privredni vjesnik Year IV No 0150

LUKA ČARAPOVIĆ, PRESIDENT, CROATIAN CHAMBER OF MECHANICAL ENGINEERS

Energy efficiency is not only cost-effective he potential of increasing energy efficiency in Croatia is enormous, both in industry and households. According to data regarding households and buildings, two thirds of total energy consumption in Croatia relates to households. The fact that the housing fund counts around two million buildings, of which 45% were built before 1970, speaks for itself. Furthermore, all buildings in Croatia built before 1990 (approximately 1.6 million) need to install new and more efficient heating systems. Renovation and construction of new heating systems might generate a new investment cycle by employing experts from the area of heating,

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New, more efficient heating systems are required to be installed in around 1.6 million buildings air conditioning and ventilation, which currently have almost no work. The similar example was accomplished in Germany several years ago and covered the replacement of one million boilers. Therefore, significant energy saving will enable considerable investment and employment. An increase in energy efficiency achieves financial savings in addition to cuts in energy consumption whilst preserving the comfort of household members, but it also has other effects. Energy consumption reductions in households reduce the need for energy production as well as the requirement to build new production plants for electric energy and IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription

Branko Roglić, owner of the Orbico Group

The problem Croatia canno

The balance between public consumption and the real economy h around a hundred and restructure public companies by inviting te Jozo Vrdoljak he Orbico Group has 2,300 employees and around 1,300 delivery vehicles. With Branko Roglić, its owner and one of the most successful entrepreneurs in the region, we discussed Orbico plans and business and the possible takeover of Pivovarna Laško as well as regional economic affairs. Roglić explained why he feels that Mercator and Konzum should exchange shares and merge, and why he said to Privredni vjesnik some three years ago that public companies should deposit profit in the budget, which has been the subject matter of discussion in the Croatian government for the past few days.

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imports of fossil fuels. In terms of the profession, Croatian EU accession does not bring anything new. Authorised engineers, who design mechanical installations in the construction sector, are already working in full accordance with EU regulations, applying state-of-the-art technologies in the area of heating, air conditioning, cooling, and the construction of energy and process plants. They have proven this with their work in Croatia, regional countries, but also Russia, Belarus and Syria. We might expect potential problems in administration considering one of the main EU principles: freedom of movement of the workforce. This means the local market will be open to EU engineers and the EU market will be open to Croatian engineers. It is possible to expect complications in the implementation of these regulations since the EU does not have unified conditions for the work of authorised engineers, and certain members, especially from the North, do not even have professional chambers. Regarding authorised engineers from nonEU countries, the principle of reciprocity is applied.

FOR PUBLISHER Nikola Baučić +385 1 4846661 uprava@privredni.hr

IMC MANAGER Dea Olup +385 1 5600028 olup@privredni.hr

EDITOR IN CHIEF Darko Buković +385 1 5600003 bukovic@privredni.hr

TRANSLATION Lučana Banek lucanab@gmail.com Mirjana Cibulka mirjana.cibulka@gmail.com

EXECUTIVE EDITORS Andrea Marić maric@privredni.hr Vesna Antonić antonic@privredni.hr

INTERNATIONAL OPERATIONS Ray Fletcher fletcher@privredni.hr

I believe that each Minister of finance should resign if he allows certain companies to avoid paying taxes but continue to operate In which countries does the Orbico Group operate? - We operate in Croatia, Slovenia, B&H, Serbia, Kosovo, Macedonia, Bulgaria and Moldova. We are currently opening branches in Austria and Germany, and soon in Romania with an interest in taking over their leading distribution company. We own storage facilities in all countries in which we operate. What was the last business year like? - The fall-off in consumption was felt, which is why Orbico operated at a slightly poorer level in relation to the year before. Our turnover was around €700 million. This year we are planning

to repeat the business results from 2009. This means we are planning to achieve a profit of between €795 million and €800 million. Could you elaborate on the latest information regarding your alleged interest in Mercator and its takeover? - My group specialises in distribution and it was never our intention to go into retail. Therefore we are not interested in the purchase of Mercator. It is true, however, we are part of a consortium which is interested in the additional capitalisation of Pivovarna Laško, which has a share in Mercator and wishes to sell. Nevertheless the additional capitalisation of Pivovarna Laško and the selling of Mercator shares are two independent and completely separate processes. Furthermore, we have such experience and a business rating that I would never disturb or interfere with business plans of other entrepreneurs. Every-


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INTERVIEW

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is not debt, but the fact ot stop accumulating it

has not yet been established. We have to reduce the number of counties to six, the number of cities and municipalities to enders for their boards and bring in foreign managers in order to finally make our companies profitable You warned a long time ago in Privredni vjesnik actually, that Mercator and Konzum must merge. Do you believe the same today? - I am glad someone remembers this. I believed it then, and I believe now that this is the only way these two regional franchises can defend themselves against the consequences of penetration from other big European trade franchises.

one who knows me knows this is true. I would not want someone to interfere with my plans. Total additional capitalisation of Pivovarna Laško is around €100 million. This would be distributed within the consortium. Why is it important for you to enter the ownership structure of Pivovarna Laško? - I have been distributing their products for five years now in Croatia and Macedonia. My business interest is to distribute their products in the other countries within which I operate. When I was invited to join the consortium which is planning to additionally capitalise Pivovarna Laško, I accepted the offer, since it falls within my scope of interest, but this is also my moral obligation since I am the honorary chief consul of Slovenia in Split. Furthermore, we must not forget that I started a private business in Ljubljana. I had previously worked in Switzerland.

Dalmatia is the European California Does distribution remain your core business? What are you investing in? Distribution is our core business. I have invested surplus funds into Dalmatia. This includes olive growing, viniculture and tourism. These are activities from which Dalmatia has traditionally lived. I regard it as a European California. It pays to invest in Dalmatia. I do not regard it as a five-star destination, but rather 3-star and 4-star hotels should be invested into. Return on investment is possible here. Investment in tourist villas also proved a good move. We additionally intend to invest in the nautical sector, which implies charter fleets and the construction of a marina. In general, I do not have a good opinion of large tourism complexes. First we must fill existing capacity.

What is lacking in the economic policy of the Croatian government? - The balance between public consumption and ther real economy has not yet been established. This is the first step. We have to reduce the number of counties to six, the number of cities and municipalities to around a hundred and restructure public companies by inviting tenders for their boards, bring in foreign managers in order to finally make our companies profitable. Instead of constant rehabilitation from the budget, they have to be organised in a way so as to operate profitably and deposit these into the budget. This would unload the real sector. The remaining companies should be privatised. Of course, this does not concern companies of great importance to the state, such as HEP, Hrvatske vode or Hrvatske šume. Several years ago you said if we did not come to our senses, an arrangement with the IMF would be required. Do you still feel the same or have we come to our senses? - We still have not come to our sense. We are still pulling on the rope. If the IMF entered, we would not pay 6% to 7% interest rates for funding, but rather 3% maximum. Our main problem is not the fact we are heavily in

debt. Our main problem is we cannot stop accumulating it. How can we stop the accumulation of debt? - The fact is that the real sector must finance the public sector. This is impossible if the income of the public sector exceeds the expenditure of the real sector. Therefore, due to its obligations to the state, the real sector lacks income to service its credit obligations and it is forced to do so by taking out new credit. Certain private companies should stop being financed from the budget, primarily those that are in one way or another close to the government. The question of which of them should exist should be examined. Entrepreneurs are burdened by a great number of fiscal and semi-fiscal duties. I would especially point out duties by the local administration units, but little is said about them. I believe each Minister of finance should resign if he allows certain companies to avoid paying taxes but continue to operate. Solid companies are thus put into an uncompetitive position. The public must know that bankruptcy is not directed towards workers but rather poor entrepreneurs. Are their signs the region is exiting the crisis? - Almost two years ago I said the crisis would last five years. We have still not reached the bottom. I believe we will, however, at the end of this year, or the beginning of the next. Did you have problems with the collection of debts? - This problem is omnipresent, even though we are still able to handle it. We did not reimburse the profit of the group, but retained it, always having free funds to overcome possible problems.


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Privredni vjesnik Year IV No 0150

( 88,000 tonnes of cargo

::: news Growth in tourism expected As opposed to last year when the growth of tourism income did not keep up with the growth of numerical indicators, this year RBA analysts expect more favourable results and growth of 4.4% per annum. Total income from tourism amounted to €6.24 billion, and this year an even bigger rise is anticipated, by €274.56 million. Agrokor employs 1,000 young people On the basis of the initiative Work against crisis, taken by the Agrokor consortium, the consortium has employed 1,000 young persons from different professions and education levels. Each signed a contract for a period of three months, and have found work in various companies within the consortium. This initiative is Agrokor’s response to the complex economic situation and is also the largest individual employment activity in Croatia. Violeta now a significant Croatian product The new company Violeta, which produces hygiene products and is one of the most successful regional brands in the production of diapers, hygiene pads, wet napkins, toilet paper, kitchen cloths and napkins, was opened last week

near Zagreb. The investment has a value of €12 million. Violeta now employs 53 workers, with plans to double the number during the next two years, reaching 200 employees over four years. Disability pensions above EU average Croatia, in relation to 27 EU countries, sets aside less money for retirement pensions and more for disability pensions. For example, four years ago expenditure for disability pensions ranged around 2.6% of GDP, which is above the EU average of around 2.1% of GDP. In Croatia over a quarter of total pension expenditure is set aside for disability pensions, with the EU average roughly 16%.

trans-shipped in the first three ree months this year

VUKOVAR HARBOUR

First into crisis, first out of crisis

The greatest advantage of Vukovar harbour is the Danube provid providing id din i g safe navigability 365 days a year

Svetozar Sarkanjac e were the first to experience the economic crisis and I believe we are the first to exit from it, stated Tomislav Mihaljević, Board President of Vukovar harbour. 88,000 tonnes of various types of cargo has been trans-shipped through Vukovar harbour over the first three months this year, whilst in the same period last year the figure was a mere 15,000 tonnes. According to Mihaljević, Vukovar harbour started to experience crisis in the second half of 2008 and from that period until the first quarter of this year, it recorded a decrease in traffic. Specifically, the record post war year was 2006 when Vukovar harbour saw trans-shipments totalling 915,000

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The largest users are Petrokemija and a new Vukovar company Adriatica Dunav tonnes. Even though the workload did not match the years prior to the war, when a normal annual trans-shipment figure came in at between 1 million and 1.3 million tonnes, it was a promising year. 2008 was also a satisfactory

business year recording 811,000 tonnes trans-shipped. It was followed by a significant decrease which was reflected in the 2009 results when a figure of 123,000 tonnes was recorded. The current results are satisfactory for some 80 employees of Vukovar harbour and proof that things are moving forward and we are slowly witnessing an exit to the crisis. No one-year contracts “The most significant users of the harbour are Petrokemija from Kutina and a new Vukovar company Adriatica Dunav, a new factory for mixing artificial fertilisers built in Vukovar by the Italians. In addition, Bosnia is on its way to recovery, specifically coal from Lukavac. We also deal with imports of barley and exports of malt and it is important to point out that Agrokor has become an important partner. Their purchase of Vupik increased traffic in raw materials for Agrokor. We are currently mainly dealing with trans-shipping artificial fertilisers and raw materials for artificial fertilisers, iron stock, coal and some grain”, explained Tomislav Mihaljević for Privredni vjesnik. Nevertheless, long term planning is currently almost impossible, as there are no long term contracts.

We live literally from month to month. During the pre-war period the harbour had five-year contracts with Zenica, but in the current working conditions even one-year contracts are non-existent. Nevertheless, Vukovar harbour employees are optimistic. “The most significant comparative advantage of Vukovar harbour is the Danube which provides 365 days a year of safe navigability as there has never been such a low water level which would prevent us from working. Therefore, someone who has to operate throughout the year can definitely count on Vukovar harbour”, stated Mihaljević. Barges a huge saving Reasons for optimism in business and intensifying of river cargo traffic in Vukovar harbour are to be sought in significant advantages of river traffic, specifically with respect to the increasing price of energy products.

Agrokor has become an important partner “We have recently seen an example of this. A ship from Germany, from Regensburg, carrying 2,000 tonnes of sugar; using road transport it would mean 80 trucks each of 25 tonnes. Therefore, a comparison could be made between driving 80 trucks from Regensburg to Vukovar or to use two barges to carry the same load via the Danube. In addition to financial, there are also ecological advantages”, stated Mihaljević adding that it can be more effectively expressed by the calculation which had formerly been done in Germany. The costs of a tonne/ kilometre of transported cargo by river amounted to €0.04, by rail €0.14 and by road €0.24.


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Croadriainvest, a new portal for attracting investment

Foreign investors – we are here If an entrepreneur is interested in publishing an offer on a portal, staff at the Centre will send him a questionnaire to complete covering basic information on the project for which finance is required t the Centre for Entrepreneurship Zagreb has launched a specialised portal for attracting foreign investment. The portal Croadriainvest has been conceived as a site where information on companies, projects and partnerships offered to foreign investors may be found. It will organise visits for potential investors to investment sites, provide support on the issuing of all relevant licences, offer assistance in using incentive packages and provide support after investment implementation. The project has been supported by competent institutions and its principal objective is direct connection between entrepreneurs and investors. The intention of the portal founders is for the portal to become a central venue where small and medium sized entrepreneurs will publish their projects, ideas or innovations in order for investors to make a choice on the most interesting investment.

neur is interested in publishing an offer on a portal, staff at the Centre will send him a questionnaire to complete covering basic information on the project for which finance is required. All information in the questionnaire is translated into English and published on the portal in one of the allocated sections. If an investor is interested in a project, this is assessed by the official services of the Croatian Chamber of Economy and is subsequently connected with the entrepreneur. The entrepreneur is, if necessary, offered all legal and other professional assistance throughout the finalisation of the project. It is important to stress that the

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Entrepreneurs needs Željko Kovač, Director and founder of the portal, stated that the idea of launching a portal resulted from several talks with

entrepreneurs who had pointed out the fact that they had developed projects that could not be completed as they needed financing. “Financial institutions do not engage in project financing but solely finance projects on collateral mortgages and entrepreneurs have to keep their development ideas in the drawer and wait for more appropriate times to achieve them. On the other hand, the recession notwithstanding, there are considerable financial

funds from various foreign and local investors, ranging from investment funds and large companies to individual investors looking for investment projects”, pointed out Kovač. Free to companies Promotion for investors is implemented by information sent to foreign embassies in Croatia as well as economic associations and foreign company representatives in Croatia. If an entrepre-

Croadriainvest is organising visits to investment sites and provides support on issuing licences overall process of data collection, data processing, translating, collecting offers and assessing investors is free, which makes the portal particularly appealing to local entrepreneurs. (P.V.)

NEW CERTIFICATION FOR QUALITY ON THE WEB

D&B D-U-N-S Registered TM holders Dun&Bradstreet and Bonline from Zagreb, companies providing credit rating information, have recently launched a new product for proving credit worthiness of Croatian companies on the Internet. This is internet certification D&B D-U-N-S- Registered TM for Croatia and Bosnia and Herzegovina. According to the notification, certification has been introduced as a consequence of an increasing lack of internet transparency on global markets, a serious hindrance to business. Proving their credit worthiness to new interested partners is a

significant challenge for companies. When business partners are aware

of who is behind an internet site, it is easier to make a decision. This ap-

plies also to buyers and suppliers. Croatian companies will, from now on, be able to upload D-UN Registered TM certification to their web sites as proof they have been rated by the most reputable company in this field - D&B.

D&B has made it possible to upload certification to over 25,000 company web sites globally D&B has so far made possible the uploading of certification on web sites for over 25,000 companies worldwide. It is a new

service for the European market, as it has so far been introduced solely in Sweden and Finland. Bonline has made it possible for its partners to grant certification to all companies from most countries within former Yugoslavia (Croatia, Slovenia, Bosnia and Herzegovina and Serbia). Clicking on the internet certification opens up a new window with basic information on the company behind the web site. In this way D&B confirms the creditworthiness of companies introducing themselves on the Internet. It is possible to check how the certification works by clicking on www. bonline.hr. (J.F.)


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WE PRESENT

ELTING P

Privredni vjesnik Year IV No 0150

KRONOS AGRO - KALAZIĆ WINES, BATINA

Marvellous slings An IT company moved into baby slings started when its director became a mother

Top quality wines from the slopes of Baranja Mathematics has proven that small wine producers can operate successfully if they opt exclusively for top quality wine production

he IT business and providing services in this field was the main orientation of Elting P from 1994 to 2010. Since last year this family business, currently employing five staff, has also been dealing with baby equipment and baby

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A wonder – my hands were free, the relief indescribable slings in particular. As a result Elting P has become the exclusive Croatian distributor for the German producer Amazonas, with a wide range of slings. Dunja Sabljak, the company Director, explained their new business venture (for them an unresearched market for baby equipment) was triggered by her recent motherhood. “After my daughter’s birth I realised nothing was as it had been. During the first month I was in continuous contact with her and the pace of my life saw an incomparable slowdown, which made me feel more and more powerless. A friend brought me her baby sling to try and carry my daughter. After the first insecure attempts, I managed to make her comfortable. This was a wonder – my hands were free and I felt an indescribable relief, whilst the baby was calm and quietly sleeping on my

chest. The following day I put her into the sling and went for a walk. The feeling was incredible and I made the decision – I need a sling,” she explained. Parents and enthusiasts She was faced with a problem of not being able to find a sling in any Croatian shop. “That was the beginning of the story of an IT company venturing into the sling business,” she pointed out. “The product is intended for all parents wishing to provide the best care for their babies whilst at the same time being able to lead active and more fulfilling lives”, stated Dunja Sabljak. Concerning competition, she pointed out that entrepreneurs in this area are mostly enthusiastic parents, wishing the best for their and other people’s babies. “In addition to that, you can earn something”, she remarked. New ideas abound, yet it takes a lot of effort to make them become reality. She anticipated launching a new product which the company is hoping to start selling in the near future and penetrate the regional market. “I am not ready to talk about it at this point”, quoted the director. (B.O.)

lavko Kalazić planted some one hundred thousand grapevines in the vicinity of the Danube on the southern slopes of the Baranja seven years ago. He became the second largest Baranja winegrower with over 16 hectares of grapevines, after the large Baranja vineyards. He did not want to be merely one of the many “good” Baranja winegrowers and wine makers; he wanted to be the best. Several of the certificates and medals he has received for his wines confirmed his ambition. Kalazić wines have recently received further quality recognition. Firstly, the Kalazić Traminac wine from 2009 received a Big Gold Certificate at the Beo Wine festival in Belgrade and became the quality champion in the category of white wines. In addition, several days later, it received further recognition at the reputable Split fair GAST. The company Kronos wines received a gold medal for the Pinot Blanc wine and again for the Traminac wine and a silver medal for the chardonnay barrique. The collection of medals continued at the prestigious Zagreb “Vinovita” where the Traminac wine from 2009 received a further gold medal.

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Top quality from the start Slavko Kalazić winemaking is unique since the Graševina wine is not the leading type in his over-

all range of wines. In addition, this wine story features top quality wines. “Initially young wine makers usually produce table wine, then quality wine and only thereafter some top quality wine. Nevertheless, we were able to produce top quality wine from the beginning due to quality grapes and the technology in the wine cellar, which was confirmed by several awards”, stated Kalazić. “We began our vineyards and winemaking activity on our own and we have full accountability for the whole planning process. Mathematics has proven that small wine producers can operate suc-

7 top quality wines from 14 produced by Kalazić cessfully if they opt exclusively for top quality wine production,” proposed Kalazić. They have achieved their goals and currently there are 7 top quality wines of the 14 produced by Kalazić. Such wines are intended for more demanding clients. Reduced purchasing power in Croatia impacted on the sale of these wines and the company is currently turning towards foreign market potential and higher exports. In addition, the company is anticipating deeper engagement in rural tourism, which is becoming a trademark of Baranja. (S.S.)


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CROATIAN FOREIGN CURRENCY MARKET Currency

AUD CAD JPY CHF GBP USD EUR Source: HNB

Kuna exchange mid-rate

EUR

7.360

5,407896 5,302302 6,131021 5,697635 8,326618 5,027371 7,359065 WEEK APRIL 22, 2011

USD

5.16

19.4.

20.4.

5.74

7.356

5.12

5.72

7.352

5.08

5.70

7.348

5.04

5.68

7.344

5.00

5.66

7.340 18.4.

CHF

21.4.

4.96 18.4.

19.4.

20.4.

21.4.

5.64 18.4.

19.4.

20.4.

21.4.

ANNUAL REPORT FROM THE CROATIAN BANK FOR RECONSTRUCTION AND DEVELOPMENT

::: news

Positive, but lower income and higher expenditure

Insurance premiums of €0.35 billion Gross premiums from 26 Croatian insurance agencies totalled €0.35 billion at the end of March, up 0. 5% than in the same month of the previous year, according to the Croatian Insurance Office (CIO). Calculated gross premiums registered growth in the segment of nonlife insurance by 0.7% to €0.27 billion. Calculated premiums of life-insurance decreased by 0.5%, to €76.90 million in relation to March 2010. Stable income growth for Tele2 Hrvatska At the end of the first quarter, income of Tele2 Hrvatska totalled €31.64 million, 7% more over 2010. The positive trend of EBITDA continued, and now stands at €73,800. During the period, Tele2 Hrvatska acquired 17,000 new users, ending the period with a total of 755,000 users. On a total user basis the rise is now 21%.

In 2010, the Bank achieved profits of €16.16 million a decrease of 28.7% over 2009 Boris Odorčić he Croatian Bank for Reconstruction and development (CBRD) achieved a total profit of €1267.16 million in 2010, a decline of 2% over 2009. Total expenditure was €110 million last year, up

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We consciously preserved the same interest rate as before the crisis, says Anton Kovačev, Board President of the CBRD 3% over 2009. Expenditure increased due to new accumulation of debt and an increase in reserves for credit rescheduling.

Anton Kovačev, board president of CBRD, pointed out that the Bank made a profit of €16.16 million in 2010, a decrease of 28.7% in relation to 2009 profit. “Notwithstanding higher interest rates on the international market, which made the accumulation of debt slightly less favourable than in 2009, we consciously preserved the same interest rates as before the crisis. This is one of the main causes of reduced profits which we waived in order to provide greater support to entrepreneurs,” opined the Board President. Nett crediting increase In relation to 2009, nett crediting increased by 5.2%, totalling €2.91 billion at the end of 2010, which is 93% of total Bank assets. Total liabilities increased

by 35% last year compared with the beginning of this year, totalling €2.18 billion at the end of 2010 or 68% of total liabilities. Last year, the CBRD approved a total of 1,606 loans, totalling €0.90 billion. Around 78% of loans were approved for investment into craft companies. During the period observed, approved investment credits increased, from 321 in 2009 to 401 in 2010. This trend continued and during the first quarter of 2011, when the number of approved loans more than doubled year-on-year. Therefore, in the first quarter 165 investment loans were approved, totalling €59.45 million, compared with 72 (€60.82 million) during 2010. It may be concluded that more entrepreneurs are opting for reduced investment.

Insurers want longer term bonds

Insurance agencies suggest the issuing of securities, which will be intended exclusively for investment of funds from life-insurance reserves. Furthermore, insurers regard that bonds have been issued for a too short term compared with the term for which life-insurance policies are usually issued. They are asking for an extension of the term to 15 or more years.


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Privredni vjesnik Year IV No 0150

PRODUCTS FROM CROATIAN ISLANDS

IN SEARCH OF SOUVENIRS A catalogue in Croatian and English has been created to promote Croatian islands presenting 168 products and product lines of 70 island producers Sanja Plješa he Ministry of Sea, Transport and Infrastructure launched the project Products of Croatian islands five years ago in order to retain island population which currently stands at 125,000 inhabitants. The main objective is to encourage the production of identifiable, local souvenirs which Croatian tourism is currently lacking. 16 islands are included in the project and in order for the souvenir to be granted the label “Product of Croatian islands”, the producer must submit the product for analysis and technical commission assessment at the Ministry. “Subsequently, the Council will decide to whom to allocate the label ‘Product of Croatian islands for three

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years’”, stated Project Manager, Ljubica Ugarković Ajduković, at her presentation on the project

Tenders for HOP label allocation The Ministry of Sea, Transport and Infrastructure has invited three public tenders, for Product of Croatian Island (HOP) label allocation to island producers, for granting state support to island producers for job preservation and for granting support to island associations. The public tender closes on 31st May this year. The same conditions also apply for allocating grants to island employers and applications for the tender should be submitted by 31st October.

Product of Croatian islands – a unique tourist souvenir held at the Croatian Chamber of Economy. Select products A catalogue in Croatian and English has been created to promote the products of Croatian islands, covering 168 products and product lines of 70 island producers. All products have been made of untreated ingredients and raw materials and edible products are

from authentic local recipes and ingredients. “Certain island delicacies could be distributed to Croatia Airlines aircraft so that local and international flight passengers could taste them. The products will be sold at the Duty Free Shop at Zagreb Airport and also possibly at other Croatian airports, in some shops in Croatian cities and we are planning to offer them at five star hotels”, pointed out Ljubica Ugarković Ajduković.

RESEARCH ON THE RUSSIAN TV

20% MORE EXHIBITORS COMPARED WITH LAST YEAR

Podravka’s soup is topseller in Russia

Forthcoming Days of Small Shipyards

According to an independent survey of the most popular TV channel, Pervi Kanal, Podravka’s chicken soup with pasta has been selected the best soup on the Russian market. This survey was conducted during April, and Podravka’s soup won against extremely strong competition, both local and international, confirming its status in Russia.

Days of Small Shipyards, which will be held in the Lav marina of the Le Meridien Lav Hotel in Split from April 28 to May 1 2011, will have 20% more exhibitors in relation to last year, according to the organisers. This does not include nautical and fishing equipment. Due to greater interest this year, an additional tent will be constructed in the Lav marina in addition to the existing office space. It is announced that 64 vessels will be exhibited this year, and over 40 producers of vessels from all

parts of Croatia will participate. Producers from Zagreb and the County of Split and Dalmatia (14 exhibitors each) are leaders, followed by producers from Istria (6) and three producers from the County of Primorje and Gorski kotar and the County of Šibenik

and Knin. Two producers from the County of Zadar will participate for the first time. During the Days of Small Shipyards, held part on land part on sea, this year the boat enthusiasts will have a chance to view 15 new models for the first time. (J.V.)


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