Peter Löscher, CEO Siemens During the last quarter we hit a high point in all industries in all countries for green products
Regional competitiveness, 2010 Compared with data from the survey conducted in 2007 many changes can be seen with Zagreb no longer at the top
Continental tourism Urban, rural and gastronomic linkages - a winning combination for both Baranja and Slavonia
INTERVIEW
REGIONAL COMPETITIVENESS
TOURISM
PAGES 2-3
PAGE 4
PAGE 8 2010
Croatian Business & Finance Weekly Established in 1953 Monday / 23rd May / 2011 Year IV / No 0154 www.privredni.hr
S U P P O R T E D
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
MANAGERIAL MASTER PLAN
The old policy deteriorated, the new is still in inception The master plan proposes a new policy where production is the postulate for economic prosperity and industry is the main generator Drago Živković he ambitious conception of a master plan for the development of the Croatian economy, initiated by Croma and the Croatian Association of Managers and Entrepreneurs, has become more clearly outlined at the First Conference of Managers and Entrepreneurs in Croatia, held in Zagreb. The adopted outline of the proposal of a master plan has to be co-ordinated with other associations in the economy (HUP, HOK, HGK and others) and the final
T
Croatian Chamber of Economy supported the master plan outline version is to be presented after parliamentary elections. According to Croma President, Vladimir Ferdelji, the designers of the master plan are not concealing their political objectives: they will recommend voting for those candidates whose programme will embrace the largest proportion of the master plan.
Ferdelji opined that the implementation of the economic recovery programme by the current government has led to diametrically opposite results with respect to expectations. Nevertheless, it is not surprising, since, according to him, the crux of the problem is the wrong policy that high growth can be achieved through services and consumption based
on borrowing and property sales, without production and industry. On the other hand, the master plan presents a new policy, where production is the postulate for economic prosperity and industry is the main generator. The proposal of modifications consists of 10 segments, with primarily a co-ordinated modification of monetary and fiscal policy, which implies
reduced fiscal consumption and incentivised production. Ferdelj proposes multilateral compensation as an exit from illiquidity, VAT payments due upon invoice and an extension to the time for customs duty payment. The master plan proposes modifications to the management of state companies, county development restructuring, a more effective and efficient energy policy and legislation and judiciary, as well as the incorporation of science and education into production development. Gordana Kovačević, Ericsson Nikola Tesla Board President, summarised the proposals of the ICT Sector and supported the outline of the master plan on behalf of the Croatian Chamber of Economy, where she is currently Vice President for Economy. She advocates an increase in investment into the ICT industry from the current 0.8% to 2% of GDP in 2015, e-management development and broadband internet for everyone, everywhere. Her vision is to provide broadband internet for everyone in Croatia by 2020, which would create 270,000 new jobs and increase GDP by 30%.
2
Privredni vjesnik Year IV No 0154
NEDJELJKO MIKELIĆ, DIRECTOR, RAB TOURIST BOARD
Naturism has become our brand he CNN top 10 naturist destinations list included the island of Rab and additionally promoted this island and the whole Croatia as a traditionally cultural destination for relaxation, happiness and pleasure. Tourist workers of the island of Rab have, throughout Europe, constantly promoted one of the oldest naturist beaches on the Adriatic Sea. It is Kandarola Bay, which became a well-known naturist beach throughout Europe after Edward VIII, the king of the United Kingdom at the time, and Wallis Simpson, his future wife, first bathed there in 1936. Naturism has become an identifiable brand and we believe it needs further strengthening and has to be well-positioned on the increasingly demanding European market. These ideas are promoted in the catalogue Love Croatia X, the tourism programme of Essentially Prestige, the only brochure in the
T
The island of Rab as a geopark promotes the development of scientific and education tourism United Kingdom which has presented the beaches and bays of the island of Rab, used by 3,000 British tourist agents. Tourists have different motives for spending their holidays on Rab. Bathing tourism is their crucial motive and the season for this lasts from May to October. Nevertheless, there are other tourism segments such as, for example, health tourism as a result of the vast forests and clean air beneficial for people with lung and heart diseases. In addition, there is quality hotel and IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
( 5% of income
spent on research and development
INTERVIEW: PETER LÖSCHER, CEO SIEMENS
Our work is ge
During the last quarter we hit a high point in all industries in power plants to solar and wind power plants Boris Odorčić n the previous quarter Siemens grew on a global level in all sectors and all countries in which it operates. This is due to their products for the new energy era - from highly efficient gas power turbines to solar and wind power plants, claims their CEO Peter Löscher. In the energy sector alone new orders in Siemens broke all records, exceeding €9 billion in the first quarter alone. Siemens in Croatia has recently been entrusted with work on the energy efficient modernisation of the oil refinery in Rijeka. In February, they signed a deal with the Health Ministry for €6.92 million covering the delivery of four devices for magnetic resonance imaging. In addition to their core businesses - green technologies - Siemens’ business strategy is directed to the most popular current trends: climate change, demographic change and growing urbanisation. Privredni vjesnik discussed all this with Peter Löscher.
I
family accommodation, camping and a varied local gastronomic menu. Tourists take delight in traditional island dishes, cheese and prosciutto, local lamb, a glass of local red or white wine and another island brand – Rab gateau for dessert. In addition, there is an ever increasing presence of local ecological products such as lavender, oils, honey and other bee products as well as herb products. Rab is also a geopark, which promotes the development of scientific and education tourism. I would particularly like to point out the projects and advantages of Rab with respect to other Croatian tourist resorts. They are all wellknown brands of considerable importance –the Rab fiera event, our crossbow archery tournament, the already mentioned Rab gateau and Rab small shipbuilding. It needs to be mentioned also that Rab is also one of the most important Mediterranean nautical destinations. The 75th anniversary of the royal family visit also needs to be mentioned as well as the anniversary of naturism on the island, keeping in mind a crucial brand for the enjoyment of all these distinctions and of course – our local population.
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
At the beginning of the year Siemens strengthened its growth and achieved record earnings. Which successful method is Siemens’ business based on? Sustainability and innovation is the key to our success. I dare say that innovation is the jugular vein of Siemens. Over 160 years we have been trailblazers, venturing where other companies cannot follow. If you want to stay at the top, you must develop innovative products literally every day. This applies to our entire portfolio. During the past several years Siemens has spent some 5% of its total income on research and development. We managed to preserve this level even in the midst of the crisis. This also means sus-
tainability and a long-term orientation. And it pays dividends. Today, Siemens is more inventive than ever, employing top talent and always increasing its power to innovate. Furthermore, we will boost investment this year for research and development. Last year some 30,000 of our experts came up with some
Our goal is to achieve over €40 billion of income from green technologies by 2014 8,800 inventions - 40 per each working day. The result: Siemens is more innovative than ever, as well as stronger in every sense: with some €92 billion in order backlog, we managed to top our own record, and our profit levels have never been as high as they were in 2010. Which markets achieve the best results and why? Our work is driven by green products. Perhaps you know that Siemens achieves almost a third of overall revenues with its green portfolio. This makes us the largest supplier of green, energy efficient technologies in the world. Our goal is to achieve over €40 billion in revenue from green technologies by 2014. Why is the green market growing so rapidly? Because our clients are aware that investment in green products pays off. If you look at many regions, you will see
INTERVIEW
( €6 billion
contract with Deutsche Bahn
3
( 1,500 employees in Siemens Croatia
enerated by green products
n all countries in which we operate. We owe this to our products for the new energy era - from highly efficient gas that the global economy is developing at two different rates. You will notice emerging economies in the fast lane. By 2015 they will contribute over half of global economic growth. In the last quarter these markets also grew much faster than total orders. Their growth came in around 52%, and accounted for some €7.5 bil-
lion, or 36% of total orders for the entire quarter. How did you adjust your business to the crisis? Which Siemens’ sectors proved to be the most resilient and which the most vulnerable? The crisis was another proof that the global economy has become much more unpredictable and that companies need to prepare for rapid changes. It also revealed that many managers had not been running their companies responsibly or with integrity. Thus, they put the global economy at a serious risk. People can no longer afford such behaviour. Now more than ever, business leaders must be reliable. My personal belief is to always work in a fair and sustainable manner. The same applies to Siemens. This is the way we managed, in spite of the crisis, to secure the company from future storms and performed crucial tasks even before the global economic
downturn. The fact that Siemens is now stronger than it was precrisis shows we are on the right track. We even increased our 2011 profit forecast to at least €7.5 billion. The growth in new orders and revenue will be higher. In which sectors are you the most progressive and why? During the last quarter we drove growth across the board - in all industries in all countries in which we operate. We owe this to the right products for the new energy era - from highly efficient gas power plants to solar and wind power plants. Our Energy Sector set a new record for new orders. In the second quarter of 2011 alone, new orders exceed €9 billion. In Croatia, Siemens was recently selected to perform energy efficient modernisation of the refinery in Split, and we contracted similar work in Pančevo, Serbia. Unlike our competition, Siemens did not buy growth through acquisition. We grew the old fashioned way – by earning and delivering every contract. However, we are not limited to organic growth. Be sure we are keeping our eye on every poten-
tial target for an acquisition and we are aggressively generating growth. Our mid-term goal is to reach a volume of €100 billion. What about other sectors? Siemens’ strategy is strictly orientated towards three megatrends: climate change, shifting demographics and growing urbanisation. The third is exactly one of the main challenges for world cities. People want a good quality of life. They need clean air, water and reliable electricity supplies. People need affordable health care. For example, we have recently signed a contract with the Croatian Health Ministry regarding the supply of medical equipment. People also have to be mobile and have adequate transport systems. Thus Siemens established its fourth sector – Infrastructure and Cities. We have already made the initial leap, signing the biggest contract in history with Deutsche Bahn, which will certainly strengthen the growth of this new sector. This offer includes the manufacture and delivery of up to 300 intercity trainsets, and the contract is worth €6 billion.
Income growth, despite the crisis How satisfied are you with Siemens in Croatia? Siemens’ history in Croatia dates back to 1921, when electric motors were first produced here. We currently have around 1,500 employees in Croatia. The financial crisis notwithstanding, the business of Siemens Croatia has remained stable in all sectors. It even registered income growth, new orders and profit in the fiscal year 2010. We are the perfect partners for cities, water treatment and energy production in Croatia. Currently, Siemens is delivering its first project in a series of renewable energy projects, developed by Dalekovod in co-operation with the company EKO d.o.o. (for waste management in the county of Zadar), which specialises in renewable sources and the environmental industry. Siemens will thus deliver four state-of-the-art 2.3 MW wind turbines for the wind power plant Velika Popina. After commissioning, the new wind power plant should satisfy the electricity needs of around 8,000 households. Therefore, we have already made considerable efforts for the development of the country and we are convinced Siemens solutions will continue to enhance Croatian infrastructure in order to make it even more competitive in Europe.
4
Privredni vjesnik Year IV No 0154
( 1:3 ratio of income ( 1:7 between poorest and wealthiest counties
same ratio in EU
REGIONAL COMPETITIVENESS, 2010
Competition cannot be a heroic act in a hostile environment Compared with data from the survey conducted in 2007, the greatest difference is the strengthening of the county of Varaždin even more than Zagreb Drago Živković egional differences in competiveness in Croatia remain great, and during the past three years small progress has been made to overcome them. This is evident from the Regional Competitiveness Index, a project of the National Competition Council (NCC) and the UN Development Programme (UNDP), implemented this year for the second time. Compared with data from the survey conducted in 2007, the greatest difference is the strengthening of the county of Varaždin, which is the most competitive in Croatia, even more than Zagreb. The bottom of the list remains occupied by eastern Croatian counties. It is the county of Požega and Slavonia, rich in raw materials, that the president of the NCC, Ivica Mudrinić, finds significant for the entire debate on competition: 60 or 70 years ago this area was
R
one of the most developed in Croatia since progress was then based on resources, not knowhow and innovation as now, which are clearly missing in the east of Croatia. Perception marks NCC member, Slavica Singer, explains that the competition index is calculated and based on 123 statistical and 68 perception crite-
Differences amongst counties are the least in the Pannonian region, but relate to the balance of poverty ria. It is the perception criteria that brought the county of Varaždin to the top notwithstanding the halved GDP per capita. Zagreb showed extremely low marks for business environment, whilst the
€0.4 billion into Slavonia It may currently be the most underdeveloped region, but the potential of the Pannonian region is enormous, claims the vice-president of Agrokor, Ljerka Puljić. The Croatian food and trade giant came to Slavonia in 2005 where they have since invested €0.41 billion. In staff terms, the recession helped them. Due to lack of work in Zagreb, they acquired experts who were willing to go to Slavonia. In order to achieve a general increase in competitiveness, capacities for change are still missing, says Ljerka Puljić. She does not see the need in changing the exchange rate policy since it does not have a crucial effect upon competitiveness.
county of Varaždin scored the highest. Three years ago Zagreb received much higher perception marks, and the reasons for this decline may be hiding in the change of the calculation method. Slavica Singers comments that perhaps the methodology is poorer but it is equally poor for all. On the competitiveness scale the largest jump was achieved by the county of Krapina and Zagorje, from 15th to 11th position, with the county of Koprivnica and Križevci plummeting from 7th to 12th position. Differences amongst counties within statistical regions (NorthWestern, Adriatic, Pannonian) are the least in Pannonia, but this balance relates to poverty, claims Slavica Singer, who herself comes from this area of Croatia, where she teaches at the Faculty of Economy in Osijek.
County ranking COUNTY
2010.
2007.
Varaždinska
1
4
Grad Zagreb
2
1
Istarska
3
3
Međimurska
4
2
Zagrebačka
5
5
Zadarska
6
9
Primorsko-goranska
7
6
Splitsko-dalmatinska
8
8
Dubrovačko-neretvanska
9
10
Šibensko-kninska
10
13
Krapinsko-zagorska
11
15
Koprivničko-križevačka
12
7
Osječko-baranjska
13
14
Karlovačka
14
12
Bjelovarsko-bilogorska
15
11
Brodsko-posavska
16
18
Virovitičko-podravska
17
17
Ličko-senjska
18
19
Sisačko-moslavačka
19
16
Vukovarsko-srijemska
20
21
Požeško-slavonska
21
20
Source: Reginalni indeks konkurentnosti Hrvatske 2010.
Dynamics of activities Interestingly, Pannonian Croatia also stands out in the dynamics of business activities which means local entrepreneurs are actively trying to change conditions. Their present failure to do so is equally due to government and local administration since competitiveness cannot be a heroic act of entrepreneurs in a hostile environment, points out Slavica Singer. The ratio of income between the poorest and wealthiest counties is 1:3. This seemingly looks bad the same ratio in the EU is 1:7, between the wealthiest (Lux-
embourg) and the poorest (Bulgaria). However, this ratio refers to a much larger geographical area than in the case of Croatia. Whilst the average development percentage for the whole of Croatia stands at 64%, the NorthWestern region stands at 78% and the Pannonian region at 46%. Long-term policies and the institutions that implement them will be needed in order to decrease these differences. If we were to systematise them, we would double Croatia’s GDP in 15 years, opines Mudrinić.
www.privredni.hr Business & Finance Weekly
5
A NEW KONČAR TRAIN
World quality, Croatian price The latest railway product from Končar is a low-floor electric train for regional rail passenger transport Drago Živković f all the vehicles produced by Končar-Electric vehicles were lined up, they would stretch for 20km. The value of all vehicles would exceed €1 billion at current prices. The latest rail product from Končar is a lowfloor electric train for regional rail passenger transport, which should be delivered to Croatian Railways Passenger Transport. Since Croatian Railways is obliged under the Public Procurement Act, tenders have to first be invited. Nevertheless, Darinko Bago, Končar Board Director is convinced that their train will win as it is of high quality and on a par with world standards and currently some 15% below the average price. Končar’s low-floor electric train is a multiple-part vehicle, 75 metres long with a capacity of 212 seats and 220 standing places. The declared maximum speed is 160km/h, yet its actual speed depends on the quality of track.
I
According to Končar engineers, the train construction, design and technical features ensure top comfort and a safe drive. The passenger area is an integrated end-to-end walk-through unit,
18 months between contracting and delivery and is optimised for a platform height of 55 cm. There is first class accommodation of 20 seats and second class with 192 seats. BOGIE WHEEL BASE There are eight doors on each side for rapid passenger access. The passenger area is fully airconditioned, with video-surveillance and passenger information system. It is the result of the lengthy work of 250 Končar experts, with the co-operation of Gredelj RailwayVehicle Factory and many suppliers. Josip Ninić, Project Manager pointed
out that original bogie wheel base has been produced for the first time in the region. Končar experts claim that there are not many countries in the world with the industry able to develop and produce such a high technology product as a low-floor train. There were 18 months between contracting and train delivery, including all the necessary testing. The testing was in part conducted in the Czech Republic, whilst the world premiere of the train was
5th Conference on Food Safety and Quality
HIGH LEVEL OF HARMONISATION WITH EU rganised by the Croatian Chamber of Economy, the Conference on Food Safety and Quality was held for the fifth time with the subject matter of food safety and harmonisation with the European Union. The 12th negotiating chapter discusses precisely these regulations, encompassing food safety, veterinary and phytosanitary policy. Croatia had previously adopted the national programme for promoting facilities for food products of animal origin. 735 have already been harmonised with EU regulations, with 214 still pending. Facilities that are not harmonised are able to oper-
O
ate for the local market and the market of third-world countries, and the transition period will last until the end of 2015. The system of official inspections of animals and food of animal origin was also established, with 518 adopted regulations, although the laboratory system changed. A total of 16 laboratories were officially accredited, of which three refer to reference
laboratories. Of 124 veterinarian organisations, 40 are in the accreditation process, 80 did not even start this process, and one is awaiting the conclusion of the contract. Conditions concerning the establishment and development of the administrations were also met. State Secretary for the Ministry of Agriculture, Fisheries and Rural Development, Stjepan Mikolčić, is convinced Croatia can secure a high level of human safety and customer interests. Freedom of movement of goods in the EU can only be achieved if requirements in the area of food safety are the same in all EU member countries, says Mikolčić. (K.S.)
at the Innotrans fair in Berlin where it aroused significant interest. A similar train had already been manufactured for the needs of the Railways of the Federation of Bosnia and Herzegovina. According to Končar staff, the official delivery to Croatian Railways is in place. Mario Musa, Board Member of Croatian Railways Passenger Transport anticipated the initial train route from Zagreb towards Koprivnica, Ogulin and Sisak.
ICM BUILDS NEW ETHANOL PLANT In August, the American company ICM will begin construction of a plant for ethanol and bio-petrol in Osijek. The investment is worth around €100 million, and the work is scheduled for completion next year. The plant, which will also p r o duce feed in addition to ethanolbiopetrol, will require around 450,000 tonnes of corn per year, planted on an area of 45,000 hectares.
6
WE PRESENT
MEDIA-SOFT, ČAKOVEC
Privredni vjesnik Year IV No 0154
NOKAUT, ZAGREB
High quality local brand
From innovation to global competitiveness Large players are sluggish and slow and we are turning this to our advantage harma CRM (Customer Relationship Management) solutions for working with clients in the pharmaceutical industry are the focal point of business activities for the IT company Media-Soft. The company headquarters are in Čakovec and was founded in 1996. It operates in some 40 countries and it has eight representative offices and partners
P
Currently there is no serious competition to Media-Soft in the region throughout the world with an ongoing trend towards expansion and growth. In addition, Media-Soft co-operates with 37 pharmaceutical companies such as Actavis, Abbott, Bayer, Berlin Chemie, Belupo, Beiersdorf, amongst others. “The most reputable of MediaSoft products is Sales Vision Pharma CRM, a software solution for pharmaceutical companies making it possible for their sales and marketing staff to develop and promote relationships with physicians, institutions and other clients through secondary sales”, explained Damir Šafarić, the founder and director of Media-Soft. Application as an advantage In addition to well-known and smooth running sales channels, Media-Soft has ventured into the extremely dynamic world of applications. “Our Pharma CRM
application Sales Vision iTouch can be downloaded from Apple AppStore and installed on an iPhone or iPad. It is important to point out that we are the first Pharma CRM company to have presented such an innovative solution and it is currently our significant competitive advantage. It proves that small companies can be both innovative and competitive on the global market since our applications are used in some 40 countries”, he pointed out. As the application developed and expanded the news about Sales Vision spread quickly and many pharmaceutical companies realised the advantages of the system and became aware of the fact that they can integrate marketing and sales as well as other managerial functions. According to Šafarić, there is no serious competition to Media-Soft in the region. “Our global competitors are a French and an American company which have some 13,000 employees in total and about €2 billion in turnover. Nevertheless, we still succeed in competing with them due to our flexibility and innovation. Large players are sluggish and we are turning this to our advantage”, he emphasised. The company is working on many projects for the global market. “Future growth will be based on the development of new solutions and platforms to retain competitiveness as no one has a monopoly on knowledge. If you want to be the leader, act as one”, concluded Šafarić. (B.O.)
Company created by a team of experts in different martial and fitness sports hen we hear the work knock-out, we think of boxing and we imagine a boxer lying on the floor of the ring. However, Nokaut is the name of an international company with its central office in Zagreb, founded in 2009 by a team of experts in various martial arts and fitness sports. They thought the Croatian market was missing different quality and professional products for martial arts. Nokaut also performs other activities related to sports and recreation so not everything is based on production and sales. Nokaut professional system is at the top of global standards and new trends. Thus the goal of the company management is extremely high:
W
Nokaut also organises sports tournaments
to attract satisfied customers with their service, price and quality, to hire highly qualified staff and achieve the best production quality and control of various products. Their marketing pays considerable attention to innovation and a high level of co-operation with boxing, taekwondo, karate, kickboxing, judo, aikido, MMA, kung fu, savate, fitness and pilates federations globally. How-
ever, the founders of Nokaut wish to complete their prospectus with their forthcoming publication of a specialised magazine which will be called Nokaut. They have also announced their first edition will include an exclusive interview with Saša Mučnjak, a member of the Crocop team. Professionals and amateurs Nokaut also organises various sports tournaments with the goal of promoting sport and recreation. Many products that can be bought in their store include gloves, bags, focus gloves, protective equipment, sports apparel and footwear, mats, rings, bags, balls, mats for training, various types of suspensors and fitness food. Gloves for boxing, fitness, taekwondo, karate and semi-contact are especially promoted. People who only want to strengthen their muscles can find in the store products like hand exercisers, benches for bench pressing and sit-ups. However, people who are interested in self-defence will also be satisfied, since Nokaut offers products like rubber weapons – knives for selfdefence training, bats and sprays. According to the company their products are a Croatian brand bringing closer together professional athletes and amateurs, which is why one of their plans is to present Nokaut as a local brand. (S.P.)
www.privredni.hr Business & Finance Weekly
7
CROATIAN FOREIGN CURRENCY MARKET Currency
AUD CAD JPY CHF GBP USD EUR Source: HNB
EUR
Kuna exchange mid-rate
7.42
5,535657 5,366415 6,352168 5,885319 8,418301 5,178818 7,407263
USD
5.23
17.5.
18.5.
19.5.
5.90
7.41
5.22
5.89
7.40
5.21
5.88
7.39
5.20
5.87
7.38
5.19
5.86
7.37 16.5.
WEEK MAY 21, 2011
CHF
20.5.
5.18 16.5.
17.5.
18.5.
19.5.
20.5.
5.85 16.5.
17.5.
18.5.
19.5.
20.5.
BANKS
::: news
From cost control to profit growth
Insurers gross premiums of €0.45 billion
In the first quarter nett profit of banks increased by 19% year-on-year
Petrol invests €75 million The Slovenia petrol company Petrol intends to invest €75 million in the Croatian market and increase the number of its petrol stations from the current 80 to 100. It is also aiming for a stronger position in the gas business. They announced a takeover of two smaller Croatian gas companies.
fter the recovery in 2010, the consolidated assets of banks, which in the precrisis period regularly registered double-digit growth rates year-onyear, were stable in the first quarter of 2011 compared with the end of 2010. Restructuring occurred only in assets and liabilities. The most visible fall in bank as-
A
sets to GDP will remain at a level of 117% of 2010, whereas a further dynamic of the process can be expected only if higher growth rates are achieved, suggests PBZ analyst, Ana Lokin. In relation to March 2010, bank lending was 2.3% higher, whilst the annual rate exceeded 8%, where it will probably stay until the end of the year, the result of increased fi-
For the remainder of the year, analysts anticipate further lending to the corporate sector but, with the exception of house purchases, personal lending will show no recovery sets of 19.5%, or €1.23 billion, was mainly a consequence of a reduction in the required minimum level of bank reserves, from 20% to 17%. Such movements show that the process of financial deepening is currently on hold. We evaluate that the ratio of bank as-
nancing of companies and state. Therefore, corporate lending was 1.5% higher in March compared with December 2010. Considering personal lending this reduced by 1.5% in the same period and it is evident that the growth of corporate and personal lending
Calculated gross premium of 26 insurers’ companies in Croatia stood at €0.45 billion at the end of April. This is 0.7% less over 2010 according to data provided by the Croatia Office for Insurance. Mild growth in calculated premium on a year-on-year level was registered at the end of the first quarter, but decreased in April.
together amounted to 0% in the first quarter. Lending to the state came in at €0.81 billion. Financing the corporate sector Lending to the state increased by 13.6% and remains strong although local government loans stagnated. For the remainder of the year, analysts anticipate further lending to the corporate sector but, with the exception of house purchases, personal lending will show no recovery in 2011 as a result of higher unemployment and increasing pessimism. Notwithstanding poorer lending quality and increasing bad debt reserves, in the first quarter of 2011 banks increased their nett profit by 19% year-on-year. According to reports from the largest banks, this is a consequence of reduced interest rate costs (Zaba -15%, PBZ -13%) and control of operating costs which is evident in an improvement in the costincome ratio, down by 5.2% for Zaba, 2.9% for PBZ and 2.2% for Erste Group. (V.A.)
RBA offers more favourable non-specific credit
Raiffeisenbank Austria is offering more favourable non-specific public lending. The maximum amount of credit without guarantors increased to €30,000 with a mandatory insurance package for all loans exceeding €20,000. Concerning non-specific mortgage credit, RBA also offers lower amounts, and a life-insurance policy is no longer a mandatory insurance instrument.
8
Privredni vjesnik Year IV No 0154
CONTINENTAL TOURISM
Urban, rural and gastronomy links - a winning combination Pinnacles of Slavonian and Baranja tourism Svetozar Sarkanjac f spring can be an indicator of the weather throughout the year, then the current tourism year could be the most prolific ever for most Slavonia and Baranja tourist workers. According to data for the first quarter of 2011, three of the five Slavonian counties recorded an increase in tourist visits and overnight stays compared with 2010. The most significant increase was recorded in Požega-Slavonia County (+20%), followed by OsijekBaranja (+6%) and BrodskoPosavska (+4%). Data for April have still not been processed, nevertheless, according to certain indicators, April and Easter holidays have outperformed previous months. This particularly applied to Baranja, which was visited by many local tourists as well as tourists from Japan, Great Britain, France, Denmark and
I
It is all permeated with the rich Baranja gastronomy
other countries. Nenad Bračun, Baranja Tourist Board Director confirmed this information. “So far we have never had as many visitors as in the first quarter of this year and there are indicators that May will continue at the same level. We achieved records at the beginning of 2009 during the Handball World Champion-
ship, yet current results have exceeded even that”, stated Bračun. Antonio Sobol, Osijek-Baranja County Tourist Board Director explained for Privredni vjesnik the pinnacles of Osijek-Baranja County, making it the leader in continental tourism as well as the background to the system of continental tourism. “Continental tourism is a broad concept; nevertheless, it mainly indicates rural areas and family farm tourism. In our case, it is a combination of tourism and nature, the urban and rural, Tvrđa and Kopački rit, Đakovo Cathedral and horsefarm, Našice Castle and public gardens and the Feričanački vineyards, Erdut Tower, Aljmaš Sanctuary and the increasingly important Erdut wine road. These are inseparable segments which constitute our continental tourism”. Two magnetic events The real delicacy of the current programme of Slavonian and particularly Baranja tourism, are several new events such as the Surduk festival and Slama-land art festival sculpture colony. Kneževi Vinogradi, a developing municipality and increasingly
attractive for tourists, Baranja Tourist Board and the company Kičendizajn are organising the third Surduk festival – an international wine and art festival as a unique event integrating wine production, art and tourism. This three day event attracted some 10,000 visitors last year. The innovative approach and a skilful combination of art in Baranja, a vineyard ambiance, surduk and gator (wine cellars carved into Baranja slopes) have become a winning combination. A wine fair, days of open wine cellars, concerts, exhibitions, art and ethnic workshops and an ethnic fair are mere fragments of events offered to visitors over the three days. It is all permeated with the rich Baranja gastronomy and promoted through the media. Similar applies to the Slama land art festival which takes place in the second half of August in Lug, a small village in Baranja. It is a sculpture colony of artists from some ten countries, whose exclusive artistic medium is straw. After a week of artistic creation, artists exhibit their work on a huge Baranja field, accompanied by workshops, music and dance performances and again, gas-
tronomy, attracting thousands of visitors. Srijem tourist news “Vukovar-Srijem County was until recently referred to as a destination for good hunting and fishing tourism with excellent gastronomy, wines and folklore customs; nevertheless, it is currently much more than that”, stated Rujana Bušić Srpak, Vukovar-Srijem County Tourist Board Director. The county currently offers over 60 attractive programmes such as river cruises, theme roads, the highly reputable Ilok wine roads and cycle lanes throughout the County. Recent projects include, for example, trips through Špačva oak forests and the Golden Thread Road passing through some eighty family farms, the Fruit Drop Road, which is a contentrelated story of Slavonian brandy which currently has some eighty registered stops with two offering accommodation. In addition, as in Baranja, there are programmes of an urban nature, such as the Vukovar Film Festival and the Vinkovci Documentary Rock Film Festival DORF.