Sanja Vuković, Director of Sajam Split Our goal is to connect buyers and sellers and get closer together
Entrepreneurs and banks Small companies are riskier but are the future, therefore lending to entrepreneurs will rise this year
Market innovation Monel to illuminate buildings through windmills but these wind turbines are no danger to wildlife
INTERVIEW
FINANCE
INNOVATION
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Croatian Business & Finance Weekly Established in 1953 Monday / 15th March / 2010 Year III / No 0101 www.privredni.hr
S U P P O R T E D Croatian Employers’ Agency
Kuštrak: “we need to see light at the end of the tunnel” The new idyllic relationship between the government and employers has been confirmed by the HUP president, Damir Kuštrak. He says the government has made a series of good decisions recently. Those employers wishing to be proactive, suggest privatising companies in which the state has a minority share and changing the Strategy Development framework between 2006 and 2013, since some of its projections became obsolete due to the crisis. Kuštrak wishes to see an abundance of new initiatives, so that conditions could improve before summer, “so we could see light at the end of the tunnel”. As Kuštrak says, he is willing to shed this light, together with the Prime Minister, possibly as soon as the next meeting between the government and employers, scheduled after Easter. Nevertheless, the government is not overly optimistic.
B Y
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pvinternational pv international C R O A T I A N
C H A M B E R
O F
E C O N O M Y
GOVERNMENT AND EMPLOYERS
A wave of optimism or mere exaggeration? The Prime Minister Jadranka Kosor announced that €1.73 billion will be invested this year from the fund for public companies
Drago Živković
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he government will use public investment worth almost €2.05 billion, amendments to the Law on Labour and the annulment of quasifiscal duties on water management in order to encourage the level of optimism shown through the termination of the lower-rate crisis tax, as is believed in government circles. From public companies funding, especially the Croatian Energy Power Industry and Hrvatske autoceste (Croatian Motorways), a total of €1.73 billion will be invested. The budget will cover funding of capital projects, such
as schools and nurseries, worth some €0.27 billion, according to an announcement by the Prime Minister, Jadranka Kosor, after her recent meeting with representatives from the Croatian Employers’ Agency (HUP).
The budget will fund capital projects such as schools and nurseries worth some €0.27 billion The Prime Minister is convinced that such moves are the beginning of a ‘psychological recovery’ and that the government is doing all in its power to ensure
a rapid and sustainable recovery. As expected, HUP supported the government decision over cancelling the lower-rate crisis tax, particularly that this decision had been announced three and a half months in advance, so that preparations could be made. They also discussed possible amendments to the Law on Labour with the aim of preserving existing jobs and the simplified creation of new ones, especially for those who lose their job after 45 or 50 years of age. Kosor believes no one will dispute this, not even the unions, whom she attempted to pacify in advance, by saying that currently, jobs are the priority.
2 VIEWPOINT
Privredni vjesnik Year III No 0101
FRANJO LACKO, DIRECTOR, PERSONAL DATA PROTECTION AGENCY
TOURISM FAIR ITB BERLIN
MAYBE YES, MAYBE It is important to NO… know the purpose of Despite last minute bookings some 42% of data sharing German tourists have already chosen their Financial penalties are provided for any possible violation of personal data protection he range of breaches of the law on personal data protection is quite diverse in Croatia. They include excessive gathering of personal information, advertising debtors on billboards in residential buildings, non-permitted publishing of personal information, retaining personal information longer than necessary and using personal information for marketing purposes. Of all media, the internet is that which most often violates privacy, being the most favourable for such violations, for example, identity theft. During elections, candidates often use addresses of certain groups of people which can be found in data bases for other purposes, and then send promotion material which they are not allowed to do. It is important to say that when someone asks us for information, first we must know the purpose. This is one of the EU principles and of which we must constantly remind the public, as well as the fact that they often decide themselves whether they will give personal information. Giving personal information is, in most cases, prescribed by law. For example, when you are about to be employed, you need to give personal details so that the employer can fulfil his legal obligations. However, in many other places it is important to ask for what purpose this personal information is needed, which the
Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
Sanja Plješa t this moment, it is hard to predict this year’s tourist season, but the general perception of the market does not seem as dramatic as last year. The Minister of Tourism, Damir Bajs, pointed out at the Fair that Germany is the key market for Croatia, since German tourists dominate. He supported this with information according to which Croatian tourist destinations were visited by 1.6 million German tourists last year, some 2% more than in 2008, and they registered 11.5 million overnight stays, or 4% more.
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IMPRESSUM:
destinations for 2010
Personal Data Protection Agency (AZOP) controls. Banks and other financial institutions often gather information excessively from the public, for loan approval purposes. We have made several interventions for this reason, and we inspected certain financial institutions. Thereafter we warned them that they excessively gathered information from clients, and requested them to destroy this since they were breaking the law. Sanctions are prescribed for any possible violation of personal information protection if managers of personal data bases do not act according to the decision of the Agency (to refuse to destroy illegally acquired data, not providing suitable protection, gather and process personal data for other purposes), we initiate a court procedure. According to law, the penalty for companies ranges from €2,750 to €5,500 and from €700 to €1,400 for private individuals.
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 Tr@duco traduco@zg.t-com.hr
EXECUTIVE EDITORS Andrea Marić maric@privredni.hr Vesna Antonić antonic@privredni.hr
COUNSELLOR, INTERNATIONAL OPERATIONS, LANGUAGE EDITOR Ray Fletcher fletcher@privredni.hr
Germans – champion travellers According to first reports, it is noticeable that Germans will retain their title of champion travellers this year. Despite last minute booking, which is still popular, some 42% of German tourists have already chosen their destination for 2010. Currently, Turkey is seeing the best booking rating on the German market, said Selimir Ognjenović, direc-
tor of the German tour operator ID Rive Tours, specialising in Croatia. He did, however, point out that Croatia should not fear Turkish competition, since their offers are mostly all-inclusive, whilst Germans visiting Croatia do so for additional reasons. When “Privredni vjesnik” asked Kristijan Staničić, Board Presi-
dent of Liburnia Riviera Hotels from Opatija, about his estimates for this year’s season, he said that in spite of moderate optimism, turnover in tourism is still dubious. “Our current booking level is the same as last year. Most arrivals are expected from the German, Austrian, Italian and Slovenian markets. Although, competitors, such as Italy, Greece and Turkey are lowering the prices of their packages in order to attract more tourists, Liburnia Hotels
Germany is the key market for Croatia with 1.6 million tourists holidaying last year will keep the same prices as last year, but with additional value (wellness and various entertainment programmes)”. Ubiquitous offer “We expect German visitors to return to the south of Croatia and we are registering solid bookings from the French and British
markets”, pointed out Vladimir Bakić, director of the Tourist Agency of the Dubrovnik-Neretva region. The Berlin Tourism Fair shows that even if we do not have ‘visitors in our pockets’, the offer of Croatian tourism packages within the brochures of all important German tour operators is of paramount importance.
www.privredni.hr Business & Finance Weekly
( 1,273
INTERVIEW 3
exhibitors
from 15 countries participated at the 15th GAST Fair in Split
(
% growth over last year
INTERVIEW: SANJA VUKOVIĆ, DIRECTOR OF SAJAM SPLIT
OUR GOAL IS TO CONNECT AND GET CLOSER TOGETHER
We are aware that business people have tired of the classical concept of fairs, where the key factor was to organise stands. We have directed ourselves towards organising professional conferences and assemblies, and it has proven to be a winning combination ous groups in society. We have been doing this quite successful for the past several years.
Jozo Vrdoljak fter a change in the ownership structure in November 2009, Sanja Vuković, former leader of the GAST project, became director of Sajam Split. “Privredni vjesnik” spoke with the new director about the problems and prospects for fairs. She revealed that GAST is continually growing, registering 5% growth in all indicators this year. This growth puts it amongst the rare successful fairs in the entire region.
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What is your opinion on a potential permanent display? It is known that Split, unfortunately, does not have a venue for fairs. Therefore, this idea is not possible to implement. Furthermore, in order to achieve this idea, we would have to come up with an entire concept and build the required accompanying infrastructure. A year-around fair would need to be of a sales type, and this approach would be commercially successful. We would need to think of a way of dealing with competition, trade and sales franchises, and more popular shopping centres. We have seen the crisis has also affected several of these centres, therefore, I think this idea is doomed from the beginning.
Fairs are important to the city in which they are held. Hotels in the Split area reduce prices for fair exhibitors Considering your growth, what strategy have you opted for over the past years? We are aware that business people have tired of the classical concept of fairs, where the key factor was to organise stands. Since our two fairs, GAST and SASO, consist of a series of specialised fairs, we have turned towards organising professional conferences and assemblies, with themes for each specialised fair. This has proven to be a winning combination, since we have achieved direct contact with professionals who attend conferences and company representatives who exhibit their products. We have become aware that a fair is a place where organisers can connect and bring closer together vari-
The key is mutual communication Notwithstanding the fact it is organised in assembly facilities, some 1,273 exhibitors from 15 countries took part in the 15th GAST Fair in Split. This is a 5% increase over last year. The successful tradition of the Fair in Split spans 15 years and the city is still adjusting its potential to the Fair. For example, there is still no accompanying entertainment programme. However, we have recognised the needs of our exhibitors and have completely adjusted to them. Similarly, we know how to recognise the potential of some institutions; consequently, through the Croatian Chamber of Economy, we have gathered a respectable number of exhibitors from the timber industry, despite the fact this sector has suffered the greatest blow during the crisis. Additionally, we keep up with design and visual innovations of exhibitors, and the fiscal policy of other fairs, explains Sanja Vuković.
What can cities, where fairs are held, do for them? Fairs are important to the city in which they are held. I must admit I do not understand why prices of hotels are higher in Zagreb during the Zagreb Fair. On the other hand, hotels in Split reduce their prices for fair exhibitors. The fact is that the costs of fair venues are not the most significant costs for exhibiting companies. Therefore, the local administration and local entrepreneurs, who benefit indirectly from the fair, need to know that nothing is permanent, and that business should be performed correctly in good times, and not to only during bad times.
4
Privredni vjesnik Year III No 0101
( around 2%
for lending to the general public
( 12%
for SME lending
ENTREPRENEURS AND BANKS
Small companies are riskier but are the future Last year, especially during the first half, banks in Croatia were more concerned with the financial needs of the state than entrepreneurs. This, however, is likely to change this year Drago Živković he Croatian financial system is most certainly stable, yet entrepreneurs, especially the small and mediumsized companies do not benefit. The fact is that last year, especially during the first half, banks in Croatia were more concerned with the financial needs of the state than with entrepreneurs. This, however, is likely to change substantially this year, at least based on a survey conducted on eight Croatian banks.
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Low productivity, high profit According to the analysis, presented by Velimir Šonje from the Arhivanalitika company at the round table of the Croatian Banks Association and the Croatian Employers’ Agency, this year banks anticipate a growth in lending to small and medium-sized enterprises by at least 12%, some 10% relates to large enterprises and less than 2% will cover the general public. This is quite the opposite of the bank evaluations concerning bad debts, since it was 12% last year for small entrepreneurs, double that of 2008. Nevertheless the rise in bad debts of large enterprises was three times higher, although 50% lower compared with small and medium-sized companies. Lending to the general public, however, was and remains, the safest. The range of small and medium sized entrepreneurs is quite diverse. It consists of craftsmen, tradesmen and family owned businesses, each treated differently under the law, rather than uniformly, according to Damir Kuštrak, President of HUP. Al-
though SME’s are highly relevant, since they employ at least two thirds of the total number of those employed, achieve 55% of
If large companies have money in their accounts and do not pay the smaller ones this is not illiquidity, but roguery, says Lovrić gross profits, they should not be marginalised or neglected, says Šonje. This regards entrepreneurs who have low productivity per employee (often four times lower than large companies), yet contribute with a high share of profits tax, which makes them critical for the state budget. From a bank perspective, SME’s are, by default, riskier than larger ones, since their cash flow is weaker and they are often tied to only one or two
buyers. If buyers do not pay on time, they have to settle their obligations to the bank, which has to settle the debt through collateral. This kind of payment of debts includes court eviction, which can last a decade, according to the Board President of Karlovačka banka Sandi Šole. Debts which have not been settled within 180 days must be registered as a loss by them, and if losses increase, it needs to increase its capital adequacy ratio, which is harder then ever during a recession. Poor financial reports Additional problems bankers often encounter, explains Šola, concern too many poor financial reports from SME’s, which is a consequence not only of bad training, but a lack of expertise in many accounting services, warns Tihana Kraljić, director of administration for small enterprises in the Ministry of Economy. Šola and Kraljić, therefore, advocate more intensive train-
ing of SME’s, whilst Šonje suggests cutting costs for opening and closing a business, as well as a lower rate of profit tax for SME’s. Additionally, the authorities should proclaim zero tolerance for all non-payment, similarly to zero tolerance for corruption. The president of the Board of SME’s Association in HUP, Petar Lovrić, thinks the state should reckon with everything he calls ‘covert’ banking - operating with someone else’s money. If large companies have money in their account and do not pay the small ones, this is not illiquidity, it is roguery, says Lovrić. The law on enforcement, drawn up by the Ministry of Finance, should help fight this roguery, reveals Damir Kaufman, director of the Financial System Administration at the Ministry of Finance. But this is not enough. Negative perceptions within society also need to be eliminated, but this is not only a matter for the state, but for the media also, says Kaufman.
www.privredni.hr Business & Finance Weekly
5
WOMEN AND ENTREPRENEURSHIP
From subsidising nurseries to more business-women
Business women should be able to obtain 40% of all state subsidies for entrepreneurship by 2013 Igor Vukić t is still not a known fact that the Ministry of Economy subsidies business-women with 75% of the cost of nursery schools and 75% of the cost of a child’s overstay, for a period of one year. The measure has already yielded good results, and the government is using it as a positive example in their strategy of encouraging women entrepreneurship between 2010 and 2013, adopted last week. The Action Plan for the implementation of this strategy has also been accepted, and the group that will control this has been selected. According to the Minister of Economy, Đuro Popijač, business-women currently manage to obtain 18% of all state subsidies for entrepreneurship, and the goal is to reach 40% by 2013. From subsidies allocated by the Ministry of Economy, businesswomen managed to reach the 40% target in 2008, but their share dropped below 30% last year. In actual fact they would need more than 40%, since women represent 52% of the overall
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THE CRISIS TAX
population, pointed out the Prime Minister, Jadranka Kosor. She added that women entrepreneurship could conceivably reduce the above-average share of women amongst the unemployed. It is also visible that individual subsidies, which women obtain, are smaller than those for men. This is often due to the different nature of business enterprises. According to analyses there are less production-oriented projects, and more service-oriented projects in the case of women. Therefore the structure of subsidies will aim at changing this relationship, in addition to encouraging women to get more fully involved in entrepreneurship. Craftswomen more prevalent According to research from the Krug association of businesswomen, the number of companies owned by women increased from 8,254 to 17,528 between 2002 and 2006. This means that their share in the total number of companies increased from 13% to 22%. In terms of craft businesses, there were more women at the end of
2009: they own 30%. As a company becomes larger or income rises, the less they are owned by women; from 30% in micro-enterprises to only 12% for mediumsized companies. According to Popijač, women run their comp a nies more conscientiously and go bankrupt less often; a valid reason why the government anticipates positive changes in the forthcoming period.
THE EUROPEAN COMMISSION ACCEPTS CROATIAN REQUEST
No 2% crisis Transitional period for Croatian shipbuilders for tax from July 1 harmonisation The Prime Minister Jadranka Kosor announced that the 2% crisis tax on salaries, pensions and other nett income between €410 and €820 would be abolished with effect from July 1. There is still no official announcement regarding the cancellation of the 4% rate. “I thank everyone who recognised that the introduction of this tax was a necessary measure last year. It was one of the preconditions, and now we can introduce measures for subsidising the economy. We simply could not afford to do that last year”, said the Prime Minister.
The European Commission has accepted a Croatian request for transitional periods in the chapter of transportation policy, which should enable Croatian shipbuilders to better prepare for forthcoming European competition. This proposal should also be accepted by all other country members who have
the final word, according to media reports. It is stated that according to the chapter on transportation policy, Croatia asked for a transitional period up to the end of 2016 for liner sea transport, and the end of 2014 for the so-called circular transport, more precisely irregular, tourist transport lines, so that Croatian shipbuilders could gain additional time to preserve their monopoly for better harmonisation and for facing European competition. This transitional period should allow Jadrolinija and other smaller shipbuilders to renew their fleet. When the EU opened this chapter, it had evaluated these demands as unacceptable, but the Commission has changed its mind. The EC is currently drawing up a joint negotiating stand for closing this chapter, which will then be referred to the EU Council, with country members accepting it unequivocally.
6 WE PRESENT THERMAL SPRING SVETI MARTIN
Privredni vjesnik Year III No 0101
FERO LEKO, ZAGREB
Preparations for a healthier life travel globally From their present multimillion deals, Leko points out co-operation with China where 250,000 boxes of preparations will go
Thermal paradise close at hand Sveti Martin thermal springs, employing some 200 workers, will continue to employ locals, in line with their expansion programme even years ago, when the first investment was made in the tourist facilities of the former Vučkovac thermal springs, now Sveti Martin, few expected, despite an investment of €45 million, that things would happen quite so fast. It was the largest greenfield investment in Croatia. In just a few years, a complex of outdoor pools was built, the Spa Golf 4-star hotel, and a dozen lodges, also 4-star, as well as a heated golf course of eight holes. There are only four similar golf courses in Europe. Only a 15 minute drive from Čakovec and an hour from Zagreb along the motorway, Sveti Martin thermal springs are becoming a top tourist destination according to European criteria. “Planning and investment is thorough and systematic, so we do not have any large business problems even in these recessionary times”, notes Rudolf Radiković, Director General of Sveti Martin.
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Russian strategic partner required Although the first few months of 2008 were profitable for Sveti Martin thermal springs, the announcement of a recession coming from the U.S. was depicted
by the local media as ‘fatal’. As a consequence Sveti Martin thermal springs business slowed. “Last year was difficult, but it is precisely because of the deepening recession that these times cannot be compared with past years or any announcements for the future”, mentioned Radiković. He added they were planning to build a further 300,000 m2 wellness hotel, shopping centre with a casino, a small accommodation complex for golfers, and increase the number of greens, made from artificial grass with heating, to the maximum of 18 holes. Sveti Martin thermal springs now employs some 200 workers, exclusively from the locality, and the plan for future employment is still based on the principle of hiring locally. Regarding investment in Sveti Martin thermal springs, Radiković said that most of the capital is local. Around 5% of shareholders in the Springs are foreign, and they wish to attract a strategic partner from Russia for the last phase of construction. Sveti Martin thermal springs are in competition with thermal springs in Slovenia, and according to some media headlines, the stay in our complex is 40% cheaper than elsewhere, notes Radiković. (S.P.)
ntigripin tea in filter bags - Antipirik – a product which fights against influenza, since it quickly reduces temperature, the symptoms of the virus, influenza and bronchial pneumonia. Amongst other things it has a positive effect on mutated viruses, such as H1N1, and is produced by Fero-Leko from Požega, founded in 1997. The main activity of the company, which used to employ 12, but now in difficult economic times, employs six, is the production of diet products. The owner of the company, Vladimir Leko, says he has registered 35 products and some 20 approved patents, with his preparations gaining many local and international acknowledgments and quality certificates. Most of his products are intended for improving and maintaining health. The list of products also includes “Antidijabetis” tea and capsules which lower and stabilise glucose level in the blood system, normalise cholesterol and triglycerides and improve the damaged metabolism from fats and carbohydrates. Furthermore,
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Fero-Leko produces creams, blackberry wine, drops for reducing high blood pressure, honey and even chewing gum with an extract of the bitter grass “iva”. Extensive registration a necessity After a preparation is produced on an organic basis, Vladimir Leko is the first to test it. “After me, my friends try it, and then I send it to the PharmaceuticalBiochemical Faculty in Zagreb. They verify whether all the ingredients and their ratios are appropriate, and then they are corrected if necessary”, he explains. The Ruđer Bošković Institute also verifies the correctness of ingredients and exactness of ratios. After that a registration file is created, and all this costs some €6,850. Ingredients used to prepare products are mostly supplied from Croatia, and those that are in short supply, for example cranberry extract, are imported. From the present multimillion deals, Leko points out co-operation with China where 250,000 boxes of anti-diabetes products will be shipped. (B.O.)
www.privredni.hr Business & Finance Weekly
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CROATIAN FOREIGN CURRENCY MARKET Currency
Kuna exchange mid-rate
AUD CAD JPY CHF GBP USD EUR
4.673018 4.917705 5.702691 4.957850 8.368399 5.150558 7.288039
Source: HNB
EUR
USD
5.35
10.3.
11.3.
12.3.
13.3.
CHF
4.99
7.27
5.33
4.98
7.26
5.31
4.97
7.25
5.29
4.96
7.24
5.27
4.95
7.23 9.3.
WEEK ENDED MARCH 13, 2010
::: news
7.28
5.25 9.3.
10.3.
11.3.
12.3.
13.3.
4.94 9.3.
10.3.
11.3.
12.3.
13.3.
Savings increase
Osječka pivovara: Strike causes €0.9 million losses Due to a strike at the Osječka pivovara (brewery) which started on February 24, as a result of the conditions of the collective agreement signed by brewery workers had been refused, significant losses were suffered. During their press conference, the Board of the brewery revealed that damage from the contracted and undelivered goods due to strike, was worth €0.68 million. Damage as a result of halted production is several times greater. Marketing damages are estimated at €0.22 million. Baška Voda Hotels: Deficit decreases by 45%
Kuna deposits drop but foreign currency deposits increase According to data published by the Zagreb Stock Exchange, Baška Voda Hotels ended last year with a deficit over €0.82 million, some 45% lower than 2008. Considering the current economic state, the Board President, Jakša Medić, evaluated business in 2009 as “satisfactory”. Production prices up 2.7% In February 2010, prices of industrial products decreased by 0.1% in relation to the month before, according to the Central Bureau for Statistics. In relation to February 2009, prices are 2.7% higher. Statistical analyses of the main industrial groupings show that production price growth on a year-on-year basis was mainly influenced by higher energy prices, which were 12.6% higher in February over February 2009.
The depreciation of the kuna by 0.09% in relation to the Euro had little influence on the monthly growth of total deposits ccording to data provided by the Croatian National Bank (HNB), total deposits with banks (deposited money, savings deposits, time, foreign currency and kuna deposits) amounted to €28.40 billion at the end of January, some 0.4% or €109.67 million more than at the end of December 2009. The depreciation of the kuna by 0.09% in relation to the Euro did not have a great influence on the monthly growth of total deposits. Total deposits increased by €0.62 billion on a year-on-year basis (2.2%). This occurred due to a low base from last year, since the value of total deposits dropped to €27.77 billion in January 2009. The amount of savings and time
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deposits registered a second consecutive fall in January on a monthly basis, by €82.97 million or 2.4%. The fall was influenced by the drop in kuna deposits totalling €5.15 billion at the end of January, which is the lowest level since June 2006. Foreign savings and time deposits continued to grow, reaching a record level of €18.68 billion at the end of January. This is 14.3% more compared with the same period in 2009. Considering the fact that foreign savings continue to grow, whilst kuna savings are falling, it can be said that the process of substituting kuna deposits with foreign has continued into 2010. After registering falls for over a year,
deposits finally increased in January on a year-on-year basis. As a consequence, deposits in banks amounted to €4.56 billion at the end of January, which is 1.16% more on a year-on-year basis, point out RBA analysts, adding that growth has been registered for the second consecutive month. Whilst during previous months, decreased deposits in current and giro accounts pointed to less liquidity in the economy, their growth in January does not point to a significant improvement in liquidity. Furthermore, growth in January is primarily a consequence of the base effect, considering the fact that last year the fall in deposits amounted to 10.9% on a year-on-year basis. (V.A.)
8 ::: news HGK: tenders for small enterprise funding The Croatian Chamber of Economy (HGK) announced that they have issued calls for proposals according to the Operational scheme for subsidising SME’s in 2010, with candidates invited to submit project proposals. Funds with a value of €44.66 million will be allocated in six areas: competition and innovation, entrepreneurial infrastructure, favourable funding through subsidised interest rates, training for entrepreneurship, funds for co-operatives and crafts and projects funded by the EU.
Privredni vjesnik Year II No 0101
Market innovation
Monel to illuminate buildings through windmills
TDR market share in Serbia growing
Wind turbines are not a danger to birds, which is a common objection to classical windmills with big blades on a horizontal axis Igor Vukić
According to a statement from the Rovinj tobacco factory, their market share in Serbia increased by 49% over the past three years, reaching almost 10%. Last year, TDR sold over 1.6 billion cigarettes in this market, achieving some €20 million in income. They achieved income over €250 million throughout South Eastern Europe. TDR is also present in other European markets, and it is developing its sales network in the Middle and Far East. At the beginning of 2010, the company started building a factory in Iran and spread its business to South Western Asia markets. Popijač and 40 business people in Damascus A Croatian business-political delegation, headed by the Minister of Economy, Đuro Popijač, will be in Syria until March 16. The delegation includes 40 representatives from 27 Croatian companies, who are identifying business partners in Damascus, in co-operation with the Croatian Chamber of Economy. They also include representatives from the Croatian IT and petroleum sector, energy, project engineering, furniture industry and shipbuilding.
he Zagreb company for residential management, Monel, wishes to produce electricity using wind turbines for illuminating stairways and garages in the buildings which it manages. They have opened negotiations with Turbina IPD from Bosnia and Herzegovina that produces wind turbines, after reading about them in “Privredni vjesnik”. “We noticed Turbina had an interesting product, which would suit our company requirements. We contacted them and we are discussing the development of this idea”, said Dražen Pomper from Monel. Turbina IPD from Kotor Varoš manufactures a wind turbine with a vertical axis and innovative shaped rotating blades which contribute to efficiency. The secret lies in eight vertical panels rotating around the axis and producing electricity at a wind speed of 1.5 m/s. The construction simultaneously lets wind through, so it cannot break in strong winds. The solution is protected through an international patent.
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No vibration or noise Such wind turbines are not a danger to birds, which is a common objection to classical windmills with big blades and a horizontal
axis. It does not create vibration or noise and can therefore be used in populated areas. For example, Turbina IPD tested its wind turbine, with a capacity of 300 watts, on the roof of a private house. Wind always circulates on Sljeme, and so residents have a permanent and virtually free source of energy for illumination, watching TV, listening to radio and heating water. Turbina IPD tested its larger model with a capacity of 5 kilowatts, during storm-force winds at the top of the Vlašić Mountain. According to calculations, investment in the wind turbine would amount to around €2,500 per installed kilowatt of power. “Privredni vjesnik” wrote about Turbina IPD as one of the finalists in the tender VentureXchange for funding companies with venture and equity capital, recently held in Zagreb. They offered investors $2 million for the development of new, more enduring models of their wind turbine. The Director of Turbina IPD, Miroslav Tešić, says that soon a facility will be installed in Slovenia with their wind turbine which will produce electricity for energy autonomous mobile phone repeater. Currently, there are negotiations under way with Vodafone for installing almost 10,000 such independent facili-
ties in India. Solar panels can be fitted to ensure complete energy self-sufficiency. Pioneers in technology “This is a classical case of regional co-operation having being invented in Bosnia, built in Slovenia and funded by Germany”, says Tešić. €500,000 of investment came from Germany for the development of the first model. The World Economic Forum has listed Turbina IPD and its founders, electrical engineers Miroslav Tešić and his father, Nenad, amongst technological pioneers, which is a recognition that in the past has been awarded to the founders of Google and similar innovative companies. Representatives of Dok-ing showed interest in Turbina wind turbines, which they would like to use along roads in order to charge their prototype electric car. Monel also intends to use solar panels on their buildings and is negotiating on this aspect with Solvis from Varaždin, and their partner may well be a local producer of energy-saving light bulbs. According to Dražen Pomper, supplying buildings with pure and cost-effective energy might lead to Monel investing more heavily in the renewable energy sector.