Import/export data for six months External demand strengthened export results
“Zombie companies” with €1.42 billion unsettled liabilities Clean-up of money-losing companies without employees
Petar Čavlović, Deputy President H1 Telekom Supervisory Board Each student to have Internet connection
INDUSTRY AND TRADE
ZOMBIE COMPANIES
INTERVIEW
PAGES 2-3
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Croatian Business & Finance Weekly Established in 1953 Monday / 23rd August / 2010 Year III / No 0118 www.privredni.hr
S U P P O R T E D
Dun&Bradstreet
Croatia faces further debt accumulation In the latest International Risk&Payment Review covering business risks in 132 countries worldwide, the credit rating agency Dun&Bradstreet still assigns Croatia a DB3d rating (with a positive outlook), reports BonLine. According to this rating, Croatia has been ranked among those countries with mild business risk. There has been a continuous decline in gross domestic product (GDP) for the fifth consecutive quarter in Croatia (2.5% in the first quarter of 2010). Apart from GDP decline, investment has declined by 13.9% from last year’s figures. A decline was also recorded in private and public spending, while exports saw a mild 3.6% growth. D&B expects a mild recovery in the second half of the year, predicting an annualised GDP growth of 0.5%. Since the deficit has exceeded the yearly target, the government will need to borrow more through bonds, and will have to speed up its Economic Recovery Programme. The agreement between Croatia and Russia on the Družba Adria project, which has been planned since 2002, has been given a positive estimate by D&B, as Croatia will gain a significant financial and geostrategic benefit. In the region, Slovenia remains at the top with a DB2c rating, followed by Italy DB3a, Hungary DB4a, Albania DB4a, Macedonia DB4b, Serbia DB4d and BH at DB6a. (V.A.)
B Y
T H E
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
FOOD AND ENERGY PRICES
DANCING ON THE EDGE OF PRICE INCREASES There is no reason for the bread price to rise, neither will there be an electricity price rise before the end of the year, announced PM Kosor e will buy bread where it is cheapest as there is no reason for an increase in its price, nor for an increase in the price of other basic food items. Moreover, in some areas the price could be even lower”, Prime Minister Jadranka Kosor emphasised at the weekly government session, and announced a meeting on food items prices,
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The government also accepted the guarantee agreement between Croatia and the EBRD, worth €12 million to finance the infrastructure modernisation of the port of Šibenik as the assumed price increase is currently raising the anger level of the Croatian public. Prime Minister Kosor also asked all those who decide on the prices of bread and other products to think twice before making such decisions, as they would thus contribute to the Economic Recovery Programme implementation. Prime Minister Kosor has also emphasised that there will be no electricity price rise before the end of the year due to a number of reasons, among which
are also good results delivered by the National Electricity Company (HEP), the only Croatian electrical energy supplier and distributor. Petar Čobanković, Minister of Agriculture, Fisheries and Rural Development has also confirmed that there is no reason for an increase in the price of bread, given that the current price of bakery products was initiated back in 2008 when the wheat price stood at almost €0.27¢ whilst prices today are much lower. He has also added that the contribution of flour to the bakery products cost structure amounts to 15%, and that the average price of one kilogramme of bakery product (a loaf of bread, several bread rolls and doughnuts) amounts to €1.92. Čobanković has emphasised that
the influence of merchandising on the price of bread is much stronger than the influence of wheat, and that this would allow a downward price correction. According to him, the price of bread in Croatia ranges from €0.48¢ to €1.63 and varies from region to region, but also within a city. “The customer is the one who should reward those who maintain acceptable price levels, and punish those who maximise their prices”, Čobanković concluded. The government also accepted the guarantee agreement between Croatia and the EBRD, worth €12 million to finance the infrastructure modernisation of the port of Šibenik. The loan was approved with a repayment period of 15 years including a four-year grace period. (V.A.)
2 VIEWPOINT
Privredni vjesnik Year III No 0118
DARKO BELIĆ, MANAGER, ELKA
Investment projects a prerequisite for economic recovery
( 14.6%
increase in exports to EU
( 11.
decreas
IMPORT/EXPORT DATA FOR SIX MONTHS
External demand
Despite the current difficulties in business operations, we will not give up – in the first half of 2010 we have achieved 80% of our sales plan and increased EU exportss Even if ship exports, which contributed significantly to the o year, while a significant 14.2% decrease was recorded in the he current economic state
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is not simple for any sector, particularly not for domestic manufacturers. The cable industry cannot be isolated from other related sectors. Every crisis reduces the scope of investment activities, particularly the implementation of large infrastructure projects, in which Elka usually participates. It includes projects in the electricity industry, shipbuilding, road construction, civil engineering, building construction as well as investment in the telecommunications sector. In addition, high interest rates, an unfavourable foreign exchange rate, stagnation and a reduction in orders have all had an impact on business for Elka in the recent past. Elka has implemented measures of business operation
Without investment projects there is no market for our products cost reduction, and despite recession conditions, opened a new medium and high voltage power cable production plant in Zagreb earlier this year, which should significantly increase export opportunities to the European Union but also to markets globally. Despite the current difficulties in business operations, we will not give up - in the first half of 2010 Elka achieved 80% of the sales plan and increased EU exports. IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
Igor Vukić
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In the previous quarter, exports totalled €11.50 million, which partly compensated for the loss in domestic and regional markets that were severely hit by the crisis. Croatia is still our largest market, and is therefore very important for business operations. Management is doing everything it can in order to ensure the stability of business operations during the current global crisis, but is powerless in terms of encouraging the implementation of necessary investment projects in Croatia, to which Elka products are tightly connected. Simply, without investment projects, there is no market for our products.
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
he recovery in external demand has influenced a reasonably good export result for the first six months. Even though ship delivery contributed strongly to the total 10.1% export growth figure, recovery from recession in the European market has had an influence on better results in other fields, for instance, in the wood production sector, chemicals and chemical products production and petroleum products exports. Domestic demand is still relatively low, which resulted in 7.7% decrease in imports. Therefore, imports have been covered by exports in the first six months by a relatively high 58.6%. Total exports for H1 amounted to €4.18 billion. Imports totalled €7.15 billion, resulting in a deficit of €2.97 billion. If this trend continues, total exports could be much better that last year (€7.63 billion of exports). However, Raiffeisen bank analysts warn that the positive foreign trade trend may not continue due to the expected mild recovery in domestic demand and particularly with energy generating product price growth trends taken into consideration. Petroleum products import growth These trends have also been pointed out by the Croatian
Chamber of Economy Macroeconomic Analysis Centre. As they note, despite the fact that reduced import value has been recorded in a many business activities, the value has been most significantly reduced in machinery and devices, cars, gas and electric energy, and finished metal products. On the other hand, the greatest growth in imports was recorded in petroleum products, raw oil and chemicals and chemical products, with the first two mainly influenced by crude oil price growth on the world market. The average crude oil price has risen
Export growth to EU, surplus with CEFTA Total Croatian exports to the EU rose by 14.6% in the first half of the year, from €2.34 billion in the first half of 2009 to €2.67 billion in the same period of 2010. Imports fell by 11.2%, and stood at €4.32 billion. All primary Croatian external markets saw export growth (27.4% in Italy, 4.3% in Germany, 15.8% in Slovenia, 8.6% in Austria). Exports to CEFTA countries fell from €0.75 billion to €0.71 billion, (5.3%). However, the surplus with this group has been maintained, with a total of €0.34 billion in imported goods.
www.privredni.hr Business & Finance Weekly
e in imports from EU
3
( 5.3%
( 27.4%
decrease in exports to CEFTA
increase in exports to Italy
d strengthened export results
overall export results, is not taken into consideration, Croatian exports have risen by 1.8% in the first six months this e same period last year months, fish and fish products exports were 25.3% lower than last year, but the decrease has been attributed to seasonal oscillations and particularly a high estimated ratio of tuna export to Japan achieved in early 2009.
Apart from the ships, the export of metal ores and metal waste, primary plastic material and household furniture strongly contributed to export growth
are not taken into consideration, has been noticed by the Croatian National Bank. In the latest CNB Bulletin, it stated that exports (excluding ships and oil) grew by 1.8%, while the same period in 2009 recorded a huge 14.2% decrease. According to the CNB, the largest contribution to such
a trend was through the export of metal ores and metal waste, primary plastic material, and household furniture. On the other hand, some areas still recorded a significant decrease, particularly in natural and industrial gas, electrical energy and fish and fish products exports. In the first six
Pharmaceutical products Some sectors saw both exports and imports grow; for example the tobacco and tobacco products sector. Here, exports grew by 17.2% to €41.37 million, whilst imports increased by 22.2% to €26.44 million. Cork and wood exports grew by approximately 10% (to €135.48 million), and shoe exports by 4% (€70.82 million). Medical and pharmaceutical products exports grew by 16.1%, exceeding €0.14 billion. Along with the growth in oil imports, growth was also recorded for the import of mineral fertilizers. Growth here was significant, from €16.99 million to €39.86 million; however exports at €58.08 million more than balanced the trade even though the figure is in line with last year.
Kuna mid - point exchange rates 2010
by 65%, from US$48 in the first five months of 2009 to US$79 currently. According to the Croatian Chamber of Economy analysts, such trends in trade show that Croatia is struggling to follow global trends, where the import/export recovery dynamics is generally quicker. Given the influence of shipbuilding on total Croatian exports, one cannot talk about a much more favourable export movement trend, CCE analysts concluded. However, a somewhat favourable commodity export trend, when shipping and oil
8,80 8,40 8,00 7,60 7,20 6,80 6,40 6,00 5,60 5,20 4,80 4,40
January Euro
CHF
February STG
March
April
May
June
US$
This 6 month graph shows how successful the Central Bank has been in maintaining stable currency rates, particularly against the Euro and with slight fluctuations in the dollar and sterling rates. This aspect has undoubtedly been of assistance to Croatian entrepreneurs and the growth of trade over the period.
4
Privredni vjesnik Year III No 0118
(
companies without employees operating in 2009
“ZOMBIE COMPANIES” WITH €1.42 BILLION UNSETTLED LIABILITIES
Autumn clean-up of moneylosing companies without employees Companies without employees guarantee a lack of assets for debt settlement according to the statement under criminal and material liability Igor Vukić pon the Croatian parliament’s adoption of the government proposals for amendments to the Bankruptcy Act, the legal conditions will have been be created for a large clean-up of the market of those companies-debtors without employees. According to the Government proposal, the Tax Administration will start summary bankruptcy proceedings against companies with fewer than five employees which have not settled their obligations for more than 60 days. The Commercial Courts before which the proceedings will be conducted will request company management board members or other representatives to deliver a list of assets, certified by a public notary, within 15 days. This is an attempt to ascertain whether the company owns assets, through the sale of which debts could be settled. The management board members and company owners will be warned that they are, in case of providing incorrect or incomplete information, subject to liability for providing false claims before the court. The Court will publish announcements in the Official Gazette in order to call for the creditors to propose the opening of bankruptcy proceedings within 45 days at the latest from publishing the call. After it has been established that there are no assets, the decision will be made on opening and immediate closure of the bankruptcy process, whereupon the company will be struck off the Court Register.
U
Analysis of companies by numbers employed 70000
69501
60000 52655 50000 40000 30000 20000 11140
10000 0
3156 Nil
1-9
10-49
Contribution to general insolvency The problem of companies without employees and which are heavily indebted has particularly deepened in the last months of the crisis. The possibility of operating a company without employees was often used to avoid payment for completed work or delivered services. For instance, it was (and is) not unusual that civil engineering development projects are implemented after establishing a new company which takes over all the contractor’s receivables. In the situation where the project runs out of financial resources,
50-249
350
267
250-499
Over 500
there is a hard road ahead for the contractors to enforce payment from the owner and investors. According to information from FINA, 27,025 companies operated without employees in 2009 and 16,302 operated at a loss. At the end of the year, 17,510 companies without employees fulfilled bankruptcy requirements. Total income of the “zombie companies”, as they are called, amounted to €1.71 billion. After taxation, the year ended with their loss of €0.37 billion. In such a manner, this is how they contributed to the general level of insolvency: these companies had €1.42 billion in
Most companies without employees in the commercial sector
Most companies without employees, some 14,609 to be more correct, operate in the commercial sector, wholesale and retail industry. They are followed by “other service activities” encompassing 10,661 companies. According to figures from the Central Bureau of Statistics, the construction industry follows with 7,801 companies without employees. In professional, scientific and technical services there are 6,902 “zombie companies”, in manufacturing 5,052, the section “arts, entertainment and recreation” identifies 4,882 and in the real estate sector the number is 4,368. In the accomodation, services and food preparation and serving related services 3,743 companies without employees have been recorded, in administrative services 2,581, and in “information and communication” services there are 2,311 such companies.
unsettled obligations, some 64.9 % of the total amount of unsettled obligations due. However, in defence of such “elastic” business-legal forms, it has to be said that the crisis had a major impact. In the first nine months of 2008, when the crisis was not at its height, companies without employees delivered overall positive operational results, with a gross income of about €0.27 and a share of approximately 7% of total gross income of Croatian entrepreneurs. Companies without employees in the majority Naturally, the potential for the deepening debts of companies without employees is still present. According to the latest figures from the Central Bureau of Statistics, companies without employees are in the majority among active companies: of 139,079 active companies, 69,501 have no employees. A further group consists of 52,655 legal entities with between 1 and 9 employees; 11,140 companies have 10 to 49 employees, and between 50 and 249 workers are employed in 3,156. 350 companies have 250 to 499 employees, and only 267 companies have more than 500. In order to clean the market of money-losing companies without employees, and to make this process quicker and more efficient, the Court Counsellors were also authorised by the governmental amendments to the Bankruptcy Act, to conduct summary bankruptcy proceedings. These will be conducted and draft proposals made based on which commercial judges will reach their final decisions.
www.privredni.hr Business & Finance Weekly
INTERVIEW 5
( between €4 and €5.5
monthly Internet financial support per student user
PETAR ČAVLOVIĆ, DEPUTY PRESIDENT OF H1 TELEKOM SUPERVISORY BOARD AND PRESIDENT OF THE TELECOMMUNICATION ASSOCIATION WITHIN THE CROATIAN CHAMBER OF ECONOMY
Each student to have Internet connection
I am deeply convinced that the E-School Project will be successful as all land-line and mobile operators in Croatia agree that it is necessary and want to be involved in it as partners publishers that recognised they could be partners in the production of online educational material. We believe the first pilotsubjects of the new E-education will be agreed upon in autumn.
Boris Odorčić roadband Internet access is one of the basics for achieving a knowledgebased society and Croatian accession to the developed European countries. In order for this to be achieved, it is necessary to simplify student broadband Internet access as much as possible. According to Petar Čavlović, Deputy President of H1 Telekom Supervisory Board and President of the Telecommunication Associa-
B
What about computers for students? We invited a Croatian producer, Končar, to make a proposal for student computers. We believe that an element of the operator’s commercial offer of broadband access can also be computer delivery (on special and inexpensive terms). All other interested equipment vendors are invited to prepare tenders for laptop or desktop computers. Firstly it is important that students can purchase computers under special, inexpensive terms. For instance, the Macedonian government did so with Intel, which is their partner in a similar project.
We believe the first pilot-subjects of new E-education will be agreed upon in autumn tion within the Croatian Chamber of Economy (CCE), this has been in preparation for a while within the E-School project. The project participants are CARnet, which very successfully ensures Internet administration through the electronic identity of each student, and the Ministry of Science, Education and Sport (MSES). The E-School Project has been worked on intensively. What is it about? The E-School Project started in October last year. The objective, the implementation of which would last four years, is that every primary and secondary school student gains connection via broadband Internet access. I am deeply convinced that the Project will be successful as all land-line and mobile operators in Croatia
agree that it is necessary, and want to be involved as partners. It has been agreed that students can opt for either a fixed line or mobile broadband Internet access. Fixed line operators set the access at 4 Mbps FLAT. Mobile operators will agree upon access characteristics by autumn. All operators also agree that the Project must be supported through financial support – either by applying for European funds or by government incentives through a new strategy of broadband Internet access development, and the Action Plan – and that the money should be used for the monthly co-fi-
nancing of part of Internet traffic used by each of about 330,000 primary and secondary school students. Such support would be relatively small, amounting to between €4 and €5.5 per student user on a monthly basis. What content would be available for students? Many subjects have already been adapted for online teaching. We have made many contacts mostly with the individuals who are developing them, as in Croatia there are not many companies specialising in this field. I have also contacted the hard-copy textbook
How would you describe the situation in the Croatian telecommunications market? Croatia has a long IT development history, a very good inheritance and it has never been deprived of access to new technologies. Moreover, it was always a leader in the region. In this respect, it has a high level of knowledge, and the market has growth and development potential, particularly in terms of broadband Internet access. Additionally, the experiences from the market liberalisation process that we are going through can be successfully transposed to those countries in which it has not started yet, for instance, Bosnia and Herzegovina or Serbia.
6 WE PRESENT THE PETEK COOPERAGE, ĐURMANEC
Privredni vjesnik Year III No 0118
MATRICA ARHITEKTURA, ZAGREB
When barrels Projects following a stagnate, furniture feminine principle helps out
Small building architecture - a niche which has become even more intense in time of crisis
ragutin Petek’s master hands turn an old wooden barrel into a unique piece of furniture. Sinks, wardrobes, tap rooms, benches, tables, garniture sets and racks are only a small part of the cooperage range from Đurmanec, where new wine, vinegar and rakija barrels,
D
All barrels, furniture and other wooden items are handmade wooden tubs and barrique barrels are produced, and old ones repaired. This is the third generation of the Petek family in which the art of cooperage has been cherished, and their craft-workshop should soon launch both beds and night cupboards made from barrels. “We have remained faithful to the tradition since the difficult early days of cooperage, founded in 1942. All the barrels, furniture and other wooden items are handmade – the technique and wood processing are still traditional. Regarding raw materials, we use old barrels that we buy, but also a high-quality oak, acacia, mulberry, chestnut and cherry chosen with particular care. We start the woodworking only when it is dry and clean, air-dried and without flaws or knots”, explains Dragutin Petek, adding that furniture and other items can also be made according to customer design and ideas. The cooper from Đurmanec makes the entire range
by himself in his craft workshop, but now, he says, he needs additional help. Through word of mouth recommendations for his awarded products, Petek’s customers also come from abroad. A dying craft “Until seven years ago, barrels were in high demand, but the business began to stagnate so I started to produce furniture and other items. When the barrel business stagnates, furniture comes to the rescue. Unfortunately, wooden oak barrels have increasingly been replaced by inox barrels in cellars. In such barrels wine or rakija cannot mature in the same way as in an oak barrel, which is, additionally, much lovelier”, says Petek, one of only ten coopers in Croatia. This dying craft is not at all easy, claims this craftsman, as it requires a considerable investment of work, money and time; collection is also made more difficult. Traditional production and its particularities have been passed from generation to generation, and the procedures and tools have not been changed for centuries. The cooper, amongst other things, must know the ‘anatomy’ of the wood and its origin. What should specifically be taken into account is the region from which it came; the demanding production process, which dates back to Illyrian times, is preceded by the careful selection of wood. The barrels are usually made of oak, and at the time they were used (E.D.)
atrica arhitektura from Zagreb is an architectural studio that follows a feminine principle, according to studio owners, architects Andrijana Pozojević and Zora Salopek Baletić. In order to clarify their approach, Zora Salopek Baletić stresses that this implies reliabili1ty.. This working method has provided them with stability during the time of crisis. The owners claim they have never striven for company growth by working on warehouses, shopping centres or residential complexes. Rather, they have chosen to work on smaller projects through which they could establish a close relationship with client needs, devote their time to specific location requirements and consistently follow their style which they like to call “modern decency” As last year saw a drop in large investment, consequently large projects are primarily those at stake, but the Matrica owners are still very busy. Small building architecture is a niche that has not face stagnation, but become even more intense in the current time of crisis.
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Top World Honour Andrijana and Zora’s specialisation was not planned, but even now it is very clear that the company is capable of high-quality performance in three different but interconnected types of architectural activities. A natural spread of their activity, which from its beginnings related to architectural design of individual family houses and smaller residential buildings,
was interior design, with a “tailormade approach” that respects particular space and the particular client instead of the so-called “equipment approach”. After working in these disciplines, they worked on old brick, stone and wood building reconstruction, turning a deteriorated building into a comfortable
Meticulousness, promptness, friendly relationships with the clients and among fellow architects house that will last for at least as long as it has already. This is exactly the field in which the architects were most successful, so much so that they were nominated for the annual Bernardo Bernardi award for their work on the Lešić Dimitri palace in Korčula last year, and this year they were, according to choice, made the World Architecture Community web portal, awarded a prize for one of the 20 best architectural works (interpolation of the above complex) despite competition from 1,200 works globally. At the moment, the reconstruction of Veliki Kaptol (a building that has not been used for quite some time) in Sisak, which is to be turned into a bishops palace, keeps them very busy, and they are also looking forward to a private house project for an old client, as they are supposed to meet the extraordinary expectations imposed. (J.F.)
www.privredni.hr Business & Finance Weekly
7
CROATIAN FOREIGN CURRENCY MARKET Currency
Kuna exchange mid-rate
AUD CAD JPY CHF GBP USD EUR Source: HNB
EUR
7.30
5,078952 5,480969 6,687154 5,521722 8,871913 5,710184 7,27763 WEEK AUGUST 21, 2010
USD
5.71
17.8.
18.8.
19.8.
20.8.
5.53
7.28
5.69
5.50
7.26
5.67
5.47
7.24
5.65
5.44
7.22
5.63
5.41
7.20 16.8.
CHF
5.61 16.8.
17.8.
18.8.
19.8.
20.8.
5.38 16.8.
17.8.
18.8.
19.8.
20.8.
INSURANCE
::: news
PREMIUMS REACH € 0.80 BILLION
66% of counties show export growth Exports in the first six months have increased in 66% of Croatian counties, with 13 of them recording a positive balance, Central Bureau of Statistics figures have shown. According to their data, Zagreb still has the greatest impact on foreign trade and overall deficit, to the extent of approximately 95%. In this respect, Istria is the leader among the 13 counties, and their foreign trade surplus amounted to €114.4 million. Exports have risen by 38.7% to €501.4 million, and imports decreased by 8.3 % to €387 million. The positive results from Varaždin county is traditional, and stands at €94.4 million.
The highest level of written premiums was achieved by Croatia osiguranje followed by Allianz Zagreb and Euroherc Vesna Antonić ccording to Croatian Insurance Bureau figures, total gross written premiums on the Croatian insurance market in late July this year amounted to €0.80 billion, which represents an annualised decrease of 2.3%. In terms of life insurance, the figure was €0.19 billion, a 0.5% decrease over July 2009, while in terms of non-life insurance it amounted to €0.61 billion, a 2.9% decrease over the year. The highest annual premium decrease (of 9.7%) was recorded by Agram životno (Agram Life), from €17.4 million to €15.71 million, followed by Basler osiguranje Zagreb with
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At the end of July, paid out claims amounted to €0.33 billion an 11.3% decrease a 9.6% fall from €37.1 million to €33.54 million, and Euroherc (from €86.23 to €79.95 million). It should be emphasised that the strongest premium growth was recorded by smaller insurers and those whose business has recently started. Thus, for Victoria osiguranje the figure was €48.67 million, an annual growth rate of 905%. Cardif osiguranje recorded
a 109.2% growth rate, from €2.45 to €5.12 million. Société Generale increased their figure from €0.99 million to €2.41 million (+144%), KD Life from €0.29 million to €0.56 million (+94.5%) and Victoria životno from €1.83 to €3.85 million (+110.5%). The market leader, Croatia osiguranje, recorded a 4.9% decrease in comparison with the same period last year (€0.29 billion to €0.27 billion). According to the insurance companies ranking list based on achieved premiums, Allianz Zagreb was ranked second with 0.4% growth, while Euroherc was ranked third. Loan Insurance Growth According to types of insurance, the highest annual premium growth was recorded for loan insurance (44%), warranty insurance (37.7%), insurance of railway vehicles (32.2%) and insurance against various financial losses (9.2%). Those seeing the largest premium decrease were legal protection insurance (30.9%), aircraft liability insurance (21.2%) and road vehicle insurance (11.8%). At the end of July, paid out claims amounted to €0.33, an 11.3% year-on-year decrease. The share of non-life insurance stood at €0.25 billion, with life insurance at €81.38 million.
Number of commercial companies rising The number of registered commercial companies has risen in the last twelve months by approximately 10,000, from 131,647 to 140,284, according to data from the Central Bureau of Statistics. The total number of legal persons, commercial companies, associations, organisations, some authorities, co-operatives and companies has grown by 5,000 to 271,111,whilst the number of active legal entities has risen by 8.3%, from 126,608 to 137,079. TThe number of stateowned companies has grown by 1.2% to 1,047. Petrol takes over Butan Company from Osijek Following the acquisition of Drnišbased Jadranplin in June, Petrol Group took over the Osijek-based Butan Company, a liquefied petroleum gas (LPG) seller and distributor. Petrol Group operates in Croatia through Petrol Croatia and Euro-Petrol from Rijeka, and is the second largest trader on the Croatian petroleum product market.
8
Privredni vjesnik Year II No 0118
Irena Spahić, EEN Croatia
Networking meetings within the conference The aim of a conference to be held soon in Pécs is to strengthen business co-operation between Central European countries events, so that visitors can see on the spot how specific things are done and how specific technology works in other countries.
Krešimir Sočković n important conference of those Chambers founded during the Austro-Hungarian Monarchy period is to be held in Pécs in the near future. The conference aims to strenghten business collaboration between those Central European Countries that were part of the Monarchy at the time. In order to enable Croatian business people to establish business contacts in the region, the Croatian Chamber of Economy/ Entreprise European Network Croatia, in co-operation with the Pécs-Baranja County Chamber of Commerce and Industry and B2 Fair Network is organising the conference Central European Businessman Meeting. Privredni vjesnik discussed this meeting and other events organised by the EEN Network with Irena Spahić, organizer of the Businessman Meeting, in EEN Croatia.
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What are your expectations from the meeting in Hungary? This time the business meetings are not focused solely on one sector and therefore applications from companies working in
the fields of the environmental, creative, healthcare and food industries are expected. Almost 60 companies from Hungary have applied so far, and we have started receiving applications from other participating countries. This is a unique opportunity for Croatian companies offering services and products in these sectors to establish direct contact with potential partners. As it is not uni-sectoral, meetings will not be bilateral, but also will include participation of companies from a number of countries. I would invite all interested companies to find more information and application forms on www.b2fair.com, and in our office in EEN Croatia.
How can entrepreneurs participate in this event? The application principle is very simple. After registration, companies can browse the profiles of registered companies and, according to their preferences, choose those that they want to contact in order to start bilateral talks. What do meeting participants say and what are their impressions? They mainly consider that such events are very useful and companies can see first-hand what is going on in other countries. Field visits to factories or plants are often organised within such
Which events will be organised by EEN until the end of the year? In September, a day before the Businessman Meetings in Pécs, we are organising a multilateral business meeting within the 43rd International Fair, MOS in Celje, for companies from Slovenia, the Friuli Venezia Giulia region, Veneto, from Carinthia, Istria and Primorsko-goranska county, as well as for companies from Hungary, Slovakia, Germany, Bosnia and Herzegovina, Serbia and Kosovo. The focus will be on using renewable energy sources in relevant sectors, such as civil construction, the metal-working industry, wood and plastic production and processing, and electrotechnical and electronic sectors. In October, as part of the 15th International Fair SASO, Croatian and international companies offering services and products in civil construction, metal industry and electro-technology will meet in Split. I would invite all conpanies and individuals to follow future announcements via our web site.
OCTOBER IN SPLIT
BROKERAGE EVENT WITHIN SASO FAIR The Croatian Chamber of Economy Split office, in co-operation with the Office for Technology Transfer at the University of Split (as a partner in the Enterprise Europe Network) is organising a brokerage event within the 15th International Saso Fair to be held from 20th to 24th October in Split. SASO Fair (www.sasofair.com) is one of the most significant civil construction, wood and metal industry, tool and equipment, electrical engineering, energy, telecommunications and craft and small entrepreneurship fairs. Last
year, it attracted more than 100,000 visitors to whom 2,400 exhibitors promoted their offerings on 35,000 undercover and 30,000 square meters of open-air exhibition area. The event is open for companies and individuals in the area of the civil engineering, materials, tools, services, assembly elements and building construction, machines and metalworking equipment, electronics, robotics and management. There is no participation fee and registration is available via http:// www.utt.hr/b2b/saso.