Damir Bajs, Minister of Tourism, Republic of Croatia We have positive hopes – but it is the results that count
Ivica Todorić, President of Agrokor at the Belje harvest A negative or zero GDP rather than a 4-6% surplus is our own responsibility
Gold medals to UniCredit and Triglav Deloitte list of 15 top banking and insurance companies in the Adria region
INTERVIEW PAGE 2-3
AGRICULTURE PAGE 5
FINANCE PAGE 6 2010
Croatian Business & Finance Weekly Established in 1953 Monday / 11th July / 2011 Year IV / No 0160 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
MONETARY POLICY
Caught between rigidity and populism Croatia is a small, open, highly euroised country, whose monetary policy cannot be interpreted from a mainstream economic theory point of view Drago Živković urrency appreciation or inflation was the crucial dilemma at the centre of attention for participants at the international forum Monetary policy during the Croatian EU accession process, which was organised in Zagreb by the Croatian Chamber of Economy. Croatian monetary policy makers have not had this dilemma for almost 18 years: a stable exchange rate is an imperative. On the one hand there is rigidity in monetary policy and on the other Croatian
C
20% of money supply is under the control of Croatian National Bank with 80% in foreign currency fiscal policy is populist by nature. The real sector was caught between the two and it failed. Consequently, it is not surprising that Croatian exports as a share in GDP is merely 19% and the level of production is the same now as 30 years ago, warned the forum host, Nadan Vidošević, Croatian Chamber of Economy President.
Monetary policy has a crucial rôle in the creation of a sustainable development model, and it is not surprising that it is the topic of recent discussions between President Obama and Chinese President Hu Jintao, stated Vidošević. We are not China or USA Croatia is not China nor is it USA, retorted Martina Dalić, the Finance Minister. Croatia is a small, open and highly euroised country, whose monetary policy cannot be interpreted from mainstream economic theory point of view, stated the Minister. This is the dilemma also for institutions whose economic knowledge is not usually questioned, she added, alluding to IMF. 20% of money supply in Croatia is under the control of the Croatian National Bank with the rest being foreign currency. Subsequently, the exchange rate is the key indicator of success of economic policy, explained the Minister. The crucial rôle of the Croatian National Bank is also, according to law, the preservation of price stability, which does not imply that monetary policy is helpless. On the contrary, it should be put into the Croatian context, concluded Martina Dalić.
Consumerist idiocy The Croatian problem is much more serious than the dilemma between a floating and fixed exchange rate, warned Ivan Lovrinović from the Zagreb Faculty of Economics. We are currently in a dead zone, since both monetary and fiscal policy are restrictive and this is not the way out of recession but the way to depression in which, according to Lovrinović, we already are. A new investment cycle must be directed towards capital goods, rather than consumption, and credit channels should be directed towards technological development or we will become victims of what
Lovrinović defined as consumerist idiocy. Monetary policy in Croatia is superior to economic policy and it should be vice versa. The Croatian National Bank is behaving as if we were living within an ambience of constant inflation. Lovrinović has two proposals: the first is already known, currency clause abolishment, whilst the second is the issuance of government investment bonds which could be subscribed by the Croatian National Bank. Consequently, monetary policy would be a promoter of economic development, particularly those projects which are not at the centre of attention of private investors.
2
Privredni vjesnik Year IV No 0160
DAVOR BOŽINOVIĆ, MINISTER OF DEFENCE, REPUBLIC OF CROATIA
Equipment for Armed Forces – new incentive for economic development
he conclusion of the analytical part of the drafting process of the strategic overview of defence produced outlines of the structure of Croatian Armed Forces in 2020. As a country with limited budgetary possibilities, we will not seek development across the total spectrum of defence and military abilities. Only those abilities critical for initial defence and crisis management will be determined, or rather those abilities we can rely on within the scope of the collective arrangements of NATO. The remaining abilities, too expensive and unsustainable for independent structuring, will be developed in co-operation with allies and regional countries in compliance with mutual interests, possibilities and needs. Our Armed Forces will be equipped with local equipment as much as possible: from coastal ships constructed in Croatian shipyards, armoured vehicles produced in Croatia, and local rifles, uniforms as well as other equipment. In that sense,
T
IMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
the co-operation of the defence system and local companies will continue. Investment into equipment and modernisation in co-operation with local producers will increase overall defence efficiency. The equipping of the Armed Forces will give a new boost to the development of the Croatian economy, creating new possibilities for transferring advanced technologies, adopting new standards and the export of locally produced military equipment. The possibilities of multinational and innovative solutions will be investigated for the most expensive projects too difficult to finance. For example, to procure fighter aircraft, we are looking into the possibility of joint procurement with other NATO members that also need to bring a decision during the forthcoming years on the procurement of new fighter aircraft under conditions of reduced defence budget. During the forthcoming period, infrastructural development will be primarily directed towards the optimisation of properties as well as assurance of work standards and accommodation. With the purpose of increasing efficiency and decreasing costs on potential locations, accommodation, training and logistic capacities will be concentrated. Considerable rationalisation of the existing infrastructure will be implemented by 2010, including the possibility of decreasing the number of properties by an additional 50%. The guiding principle will be that barracks without the capacity for over 2,000 soldiers will be regarded as non-rational; investment will cease and the process of abandoning them will speed up.
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
( 2% - 4%
increase for tourism throughout Europe
DAMIR BAJS, MINISTER OF TOURISM, REP
We have posit results that co
We have two principal goals - to outperform the European a encourage the Croatian general public to return to our touri Sanja Plješa n exit to the economic crisis has still not been found and tourism is at the focus of attention, since, according to public opinion, it should account for an improvement in the budget and for reduced unemployment at least in the short-term, by creating sea-
A
We will achieve positive results at the beginning of the peak tourist season but cannot expect double digit growth sonal jobs. Croatia, as opposed to other Mediterranean countries, has recorded satisfactory results over the past few years, whilst the Ministry of Tourism and other organisations engaged in tourism are making every effort to achieve the same level of success. Privredni vjesnik talked with Damir Bajs about the current situation and expectations for the tourist season. What are your current expectations this pre-season, for the peak season and in general, through the tourist year? Will it reach the 2010 level or outperform it? The tourist season is currently as we anticipated and expected. We have two principal goals - to outperform the European average for the fourth consecutive year whilst increasing our market share and, secondly, to use our best endeavours encourage
the Croatian general public to return to our tourist destinations. Statistically, April saw relatively satisfactory results and we are also expecting satisfactory results for June. We are achieving positive results at the start of the peak tourist season, yet cannot expect double digit growth. We still have 80% of the season left. We have positive hopes – but it is the results that count. Consequently, we believe this season will outperform last year. Nevertheless, one should remember that an increase of 2% to 4% is expected in Europe and we wish to outperform that. Europe has not repeated the results and revenues from 2009 yet. Our competitors, France, Spain and Italy are also in the red this year and we are using a similar effort in attempting to repeat the results and revenues from the past few years when we were in the black. We believe in the measures we undertook in November 2010, but must view the entire season. Currently the Ministry of Tourism and all involved in tourism are contributing towards a more successful season. In addition, I have to point out that we are already preparing for the 2012 season. In your opinion, is it possible for the tourist sector to lead Croatia out of the economic crisis? Tourism is an important economic aspect and it has a considerable share in the gross domestic product. The sector has two distinctive features; the first is that it accounts for an absolutely dominant share of foreign exchange earnings and secondly it is creates
www.privredni.hr Business & Finance Weekly
INTERVIEW
3
( 4.8% increase in GDP
in domestic tourism in the third quarter in 2010
UBLIC OF CROATIA
tive hopes – but it is the unt
average for the fourth consecutive year whilst increasing our market share and to use our best endeavours to st destinations many jobs. Over previous years, tourism has recorded an increase in GDP of 4.8% in the third quarter, consequently after a long time GDP was positive at 0.2%. In my opinion, tourism is already contributing to the economic recovery, as much as is currently possible; nevertheless an exit from the economic
crisis is to be found solely in combination with other measures undertaken by the government. Tourism, with its 15% share in GDP, can certainly significantly contribute to economic development. How much has been invested in tourism over the last several years, how exactly and what investment is antici-
pated by the end of this year and the end of 2012? Over €6 billion has been invested in Croatian tourism in the last three years. Both the state and hoteliers have invested €3 billion. This does not include private investment in buildings, apartments, marinas and facilities outside the large tourist chains. We have more than doubled the number of four and five star hotels in a relatively short period of time and currently one third of hotels are in the four and five star category. After this large investment cycle, the current cycle has seen a slight slowdown, but I have to stress that it has not stopped altogether. This indicates a consensus between the private and public sector, the fact that Croatia needs quality to be able to compete on the market and that long term goals can be achieved exclusively with quality. How much foreign investment has there been into Croatian tourism to date and why has it stagnated? There undoubtedly is foreign investment into Croatian tourism. I anticipate the conclusion
Attractive tourist autumn What activities do you anticipate in the post-season? During the preparations for this year’s tourist season we engaged in two large-scale activities. One is the partnership with TUI, the so-called TUI Inside activities, which took place at the First International Congress Media and Tourism during the pre season and the other is still to take place and that is the First International Conference on Media and Tourism, to be held on the 11th and 12th September in Zagreb in co-opera-
tion with The World Tourist Organisation (UNWTO). We are anticipating between 300 and 400 participants. We expect CNN and Google to be particularly advertised in co-organisation together with the Ministry of Tourism. Croatia will be given media attention and we will attempt to maximise it. It is the first world event of this type that has ever taken place in Croatia and I hope the full spotlight will be on Croatia. We expect the arrival of foreign journalists, media companies and PR agencies.
of negotiations and the setting of the date of Croatian EU accession, achievements of the current government, will simplify foreign investment. We can say that there is increasing interest precisely for investment into tourism. A certain amount of foreign investment, primarily due to the problems with ownership issues, is not proceeding at the pace we would desire. Nevertheless, the government is working on a solution to this problem in co-operation with local administrations. Has Tourist Land Act achieved the desired results? In my opinion it is a strategic premise which over 20 years to solve. The solution to the problem of land used by tourist companies without having paid for it and which have commenced the process of transformation of state property into private is a strategic issue of Croatian tourism. The government attitude and the solution, is in accordance with the national interest, which is not to sell the most attractive areas we possess. A concession on them may be obtained according to the model which calls for the lengthening of the season and an increased quality of service. It is in the best interest of companies to operate for a longer period, since then they have to pay a lower percentage of total revenue. We are contacting interested hotels since they have been waiting for this solution for years. We will make new investment possible and expect the first results to show in 2012. It has to be emphasised that it is not in the interest of the state to own commercial tourist facilities.
4
WE PRESENT
ADRIATIQ ISLANDS GROUP, ZAGREB
Privredni vjesnik Year IV No 0160
OPG ANTUNOVIĆ, DALJ
This is how it works when you first attract the locals Today Adriatiq Islands Group is the largest foreign investor in tourism in the Šibenik and Knin area
Lady who knows her wine Even though she is one of the youngest wine makers in Croatia, Jasna Antunović Turk already has four top quality wines winning many medals he company Adriatiq Islands Group has been oriented towards investment in tourism since the start of its work in Croatia. In its portfolio, AIG has 1,994 hotel rooms, 189 suites and 653 marina berths. It
T
In its portfolio, AIG has 1,994 hotel rooms, 189 suites and 653 marina berths all started with the desire of Hungarian investors to improve tourist capacities in Croatia, where they discovered great potential. The Group today has 271 employees and around 230 seasonal workers. The company main office is in Zagreb, whilst the hotels and the marinas are located along the entire Adriatic coast. The president of the Adriatiq Islands Group and majority owner is Tamás Vitézy, one of the most successful businessmen in Hungary. Gifts to locals Tanja Kurilić, manager of the key buyers for the company, points out that Hungarian capital was used to modernise the marinas in Primošten and Tribunj, the hotels Labineca, Laguna in Gradac, Hotel Faraon on Pelješac, Hotel Hvar and Fontana Resort on Hvar, Hotel Zora and Adriatik,
autocamp in Primošten. In addition to being the largest foreign investor in tourism in the Šibenik and Knin region, Adriatiq Islands Group invested funds outside its contractual obligations. In conjunction with the construction of the marina in Tribunj, in 2002 additional funds of €1 million were invested in the construction of a drainage system for waste water, not only for the marina, but for the entire town of Tribunj. The construction of the drainage system, access roads, repairs to the shoreline in Tribunj, a flower garden, promenade and new bowling area were gifts to the locals of Tribunj, says Tanja Kurilić. Online agency In addition to human resources, an important factor for success, and the personal strength for the promotion of Croatian tourism worldwide, vision and longterm reflection is also important. When the Hungarian investor came, the hotel business was in great distress since the former method of operating needed to be transformed. The Group’s new product is an on-line agency Adriatiq travel, which offers a spectrum of services for a quality holiday in Croatia, Europe and the world. The Agency organises various types of travel, cruising, team building and rent-a-car services. (B.O.)
nly fifty metres from the Danube bank – in the far east of Croatia – a winery and a tasting room have been recently opened, and their manager is a lady. Born in Osijek the graduate economist and entrepreneur Jasna Antunović Turk is now the proud owner of the title – wine maker. It is said she is certainly the only female wine maker in the Croatian Podunavlje and one of rare women in Croatia who decided to take on the demanding profession of a wine maker and wine grower. She established her co-operative in 2004, exactly 102 years since it had been recorded that the Antunović family started working in viticulture. Skilfully combining her strong entrepreneurial side and valuable family heritage as well as the knowledge of her father Tomo, experienced agronomist, Jasna Antunović Turk has this spring planted the last of the planned seven hectares of the vineyard on the southern slopes of the Dalj Mountain, ideal for the cultivation of white varietals.
O
Winery boutique Grapes are processed in a modern winery with a capacity of 75,000 litres. The facility is attached to a rustic tasting room which accommodates 50 visitors. In addition to local visitors, OPG Antunović in Dalj should soon start to be
visited by foreigners who would arrive via Danube cruisers. The project is worth €0.48 million and it was funded by personal and credit facilities as well as financial aid from the Ministry of Agriculture, the County of Osijek and Baranja and the Erdut municipality. The market and production work principle of the winery is the winery boutique, which means we produce small series of top and high quality wines for true wine lovers. Around 85% of wine is bottled, and the remainder is sold in bulk for frequent buyers who reserve certain amounts, points
She has recently invested around €0.48 million in wine production out Jasna Antunović Turk. Even though she is one of the youngest Croatian wine makers, her winery has already produced four excellent wines. They are graševina sur lie and black pinot barrique from the 2009 harvest, muscat ottonel and chardonnay of the 2010 harvest. Many local and international gold and silver medals have followed, and Jasna Antunović points out Villany (Hungary 2008, champion title for graševina 2007) and Beowine (Serbia 2011 – gold medal for the muscat ottonel 2009). (S.S.)
www.privredni.hr Business & Finance Weekly
5
( 120 hectares ( 8 to 10% harvested in 7-8 hours
anticipated growth for Agrokor
IVICA TODORIĆ, PRESIDENT OF AGROKOR AT THE BELJE HARVEST
Agriculture has huge potential A negative or zero GDP rather than a 4-6% surplus is our own responsibility. These goals could be achieved by sensible investment and professional people Ivica Todorić anticipates “very challenging” news from Agrokor in the forthcoming period. “I am not referring to the Mercator acquisition”, he stated, but did not wish to be more specific as negotiations are still ongoing.
Svetozar Sarkanjac arvest time is one of the most important times for most farmers in Slavonia and Baranja. This is true in a symbolic way but also in fact. Therefore it is not surprising that one presentation at this year’s harvest has recently been given by Belje and visited by senior executives of Agrokor and Belje, representatives from the most important rural associations, the Chamber of Agriculture and Agrokor business partners from
H
We are prepared to assist in the restructuring of the region since markets are restricted Croatia and neighbouring countries. State-of-the art technology in Croatian agriculture was presented over 120 hectares of land of Širine-Kneževo belonging to Belje in the north of Baranja. Ivica Todorić, President of Agrokor, expressed his delight for the project, pointing out that top quality combine harvesters, currently the best in the world, were to be used for the harvesting. Modern machinery accounts for the exceptional harvesting speed – six Class Lexion combine harvesters will complete the harvesting of 120 hectares in some seven to eight hours. Agrokor has invested some €23.29 million in Belje since its acquisition. 130 powerful tractors have been pur-
chased, 40 top quality combine harvesters as well as a considerable amount of huge, highly effective machinery. “It is important to emphasise that the annual average use of these tractors is over 2,000 hours per year, whilst the European average is about 600 hours. The effectiveness of Belje machinery comfortably exceeds the European average”, stressed Todorić. Sufficient for export Todorić’s recent visit to Baranja was an opportunity for journalists to get more information about the future plans of Agrokor. Development issues and the outlook for Croatian agriculture were crucial questions. “Agriculture has huge
potential in and for Croatia as it can significantly contribute to competitiveness, production and the creation of new products and added value. We definitely need to take this opportunity”, opined Todorić. He is optimistic about the financial expectations of the harvest. “Less wheat has been sown; nevertheless, in my opinion, we should be satisfied. We are expecting at least an average harvest yield, which means that Croatia will meet its annual wheat requirements, whilst some wheat may well be exported.” He reiterated that Agrokor is the largest Croatian wheat producer: “It is logical to expect higher wheat prices, since that would have a positive impact on our company results”.
New Agrokor strategy “It is certain that we are going to undergo significant changes over the next six months or a year”, he stated. “Agrokor is the regional leader and this is supported by fact. We see this as our responsibility. We are prepared to assist in regional restructuring, since markets are restricted. Significant changes and market concentration are critical. Everyone needs to contribute to market concentration, the Polish, Hungarians, Romanians, Ukrainians and Slovenians, as well as Croatians. There are a large number of uncompetitive small companies. They must expand and grow, since this will increase competitiveness on the European and world markets. Business by synergy must create new achievements and significantly contribute to the world economy. A negative or zero GDP rather than a 4-6% surplus is our own responsibility. We need to achieve a 4% or 5% surplus. These achievements could be accomplished by sensible investment and professional people. Agrokor is promoting this business philosophy and it is also implementing it. Consequently, this year we anticipate 8% to 10% growth”, he concluded.
6
Privredni vjesnik Year IV No 0160
( around €16.9 billion
::: news Euromoney: Zaba the best bank in Croatia Euromoney magazine has identified Zagrebačka banka as the best bank in Croatia. Zagrebačka banka achieved similar recognition by the International financial journal EMEA Finance. In addition to being singled out as the best bank, Zagrebačka banka received two awards from EMEA Finance – for the best investment bank and for the best broker. Investment in less popular shares generates revenue Investors who, at the beginning of the year, decided to invest in less popular shares could triple their earnings. According to the mid-year report from Zagreb Stock Exchange, the shares of Zlatni otok achieved the highest level of market growth. Its value tripled in six moths, from €6.85 at the end of last year to an incredible €30.14. Rabac and Dom holding shares are also amongst the ten shares with the highest price increase. Investors who did not withdraw from Magma on time were faced with the largest losses – they could lose 74% of invested capital.
Unemployment in Croatia second highest in Europe The rate of unemployment amongst young people in Croatia approached 40% and, according to Eurostat data it is the second highest unemployment rate amongst young people in Europe. Spain is the only country with higher unemployment amongst the younger population, whilst Greece is third. The level of unemployed young people is the lowest in the Netherlands, whilst a significant decrease in unemployment amongst this group has been achieved by Germany. Czech Republic is the country with the smallest share of unemployed young people amongst new EU member countries.
assets of NLB Group in 2010
DELOITTE LIST OF 15 TOP BANKING AND INSURANCE COMPANIES IN THE ADRIA REGION
Gold medals to UniCredit and Triglav In 2010, there were no significant takeovers, meaning the consolidation trend in the banking sector has ended kets, which is a consequence of the economic crisis and cuts on insurance expenses. Weaker purchasing power of the public mainly impacted life-insurance, with long-term and savings characteristics. The Slovenian market is the most developed in the region according to gross premiums per capita. According to this index, Slovenia is far beyond the rest of the regional countries.
Boris Odorčić he leading banking group in the Adria region (Bosnia & Herzegovina, Montenegro, Croatia, Macedonia, Slovenia and Serbia) is UniCredit, with total assets of €19.7 billion. It is followed by NLB Group with assets of almost €16.9 billion in 2010, and Intesa Sanpaolo with over €15.8 billion. As the three top banking groups they together hold around 36% of total assets in the region. Ivan Fabijančić, Director of Financial Consulting in Deloitte, points out there were no significant takeovers in 2010, meaning the consolidation trend in the banking sector has ended. In accordance with the strong impact of the economic crisis, internal consolidation of banks was the trend last year. During the forthcoming period, it is realistic to expect the merger of banks with the goal of creating players who are cost-efficient and have a strong base of clients and deposits, says Fabijančić. According to assets, the Croatian banking market is the regional leader. As in the past, the leading Croatian bank is Zagrebačka banka, member of the UniCredit Group, followed by Privredna banka Zagreb, member of the Intesa Sanpaolo Group, and Erste & Steiermärkische Bank. The division of large and small-sized banks is highlighted in Croatia, where large-sized banks hold 82% of total assets, achieving the highest profit. Small-sized banks are under significant pressure due
T
According to assets, the Croatian banking market is the regional leader to a rise of poor quality credit, a decrease in interest rate margins and stronger market competition, according to Deloitte’s list of 15 top banking and insurance companies according to assets in the Adria region. “Cleaning” of balances continues The Slovenian company Triglav is the leader in the insurance sector, with achieved gross premiums of €943.5 million. It is doubly stronger than Croatia osiguranje, the insurance company that achieved €444 million of gross written premiums last year. Agram Group took third position, with gross premiums of €321.8 million in 2010. Amongst the ten largest insurance companies, only three have central offices outside the Adria region, whereas the remainder are in local ownership. The decline in premiums was noticeable in almost all mar-
Stronger downturn of nonlife insurance The Croatian insurance market takes second position according to size and development. In 2010, this market registered a 1.8% decrease in premiums (as expressed in kuna), where non-life insurance registered a slightly higher decrease. According to data of the Croatian Insurance Association, the first five months of this year indicated the negative trend in non-life insurance continued, decreasing by 1.6%. Life-insurance also registered a noticeable decline, albeit slightly weaker (1.3%). According to the auditor of Deloitte, Juraj Moravek, last year banks, under pressure from regulators and strategic owners, continued the process of removing bad loans from their balance sheets, which started in 2008. In the insurance industry, premiums decreased on almost all markets as a consequence of the economic crisis. An unfavourable economic movement notwithstanding, the financial sector remains stable, which is an important precondition for the start of any recovery, concludes Moravek.
www.privredni.hr Business & Finance Weekly
7
CROATIAN FOREIGN CURRENCY MARKET Currency
EUR
Kuna exchange mid-rate
AUD CAD JPY CHF GBP USD EUR Source: HNB
5,583409 5,407155 6,380695 6,113427 8,276135 5,188397 7,399692
USD
7.42
5.7.
6.7.
7.7.
5.17
6.12
7.40
5.15
6.08
7.39
5.13
6.04
7.38
5.11
6.00
8.7.
5.09 4.7.
5.7.
6.7.
7.7.
CAPITAL OF TESLA BANK RISES TO €4.38 MILLION
Bank will offer 2%-3% interest rates for the development segment Jasminka Filipas
T
Possible new additional capitalisation of bank possible in autumn sustainable economic conditions for the return, stay and survival of Serbs in Croatia and encourage co-operation between the
two countries as well as connect Croatian and Serbian companies, said the government president of Vojvodina, Bojan Pajtić. Channel for Serbian companies The establishment of the bank provides an additional channel for the entrance of Serbian companies into the Croatian market, said the minister of the Serbian government, Srđan Srećković. During the announcement of the additional capitalisation in the autumn, the president of the supervisory board, Milorad Pupovac, said that the subject matter is discussed with a series of companies in Croatia and Serbia as well as third countries and all those who wish to support Croatian
8.7.
5.96 4.7.
5.7.
6.7.
7.7.
8.7.
::: news
Zvijezda, Končar and Šećerana from Županja have invested in Tesla Bank he latest additional capitalisation increased the original capital of the Tesla Bank to €4.38 million, and the goal is to reach over €16.4 million by next year, according to last weeks assembly of the bank in Zagreb. The fund for the development of the autonomous province of Vojvodina and the fund for the development of the Republic of Serbia participated in the additional capitalisation, in addition to the Agrokor oil factory Zvijezda (€0.55 million), Končar (€0.48 million) and the Šećerana sugar factory (€0.27 million). Previous owners of the savings bank have a smaller share in the ownership structure. The Council of the Croatian National Bank issued conformity to the fund of the development of Vojvodina in May in order to obtain over 50% share in the original capital and the bank, whose main function will be to create
6.16
7.41
7.37 4.7.
WEEK JULY 9, 2011
CHF
5.19
– Serbian co-operation and see business interest in it. Zvonko Agičić, board president, said the bank main office will be in Zagreb. It should open by the end of the year, and six branches should develop during the next five years. The bank will be commercial/development oriented. This means we will offer our quality customers the most favourable conditions on the Croatian market, and we will offer 2%-3% interest rates for the development segment. This will mostly be subsidised credit from European funds and the Croatian Bank for Reconstruction and Development. This will be our starting framework when we gather deposits in autumn, said Agičić.
Bank deposits 1.2% down since December According to the Croatian National Bank data total corporate bank deposits at the end of May stood at €29.27 billion, 1.2% down over the end of last year. This was primarily a consequence of a decrease in foreign currency savings and term deposits, whilst kuna savings and term deposits as well as deposits recorded a growth. Foreign currency savings and term deposits stood at €19.38 billion at the end of May, which is 4.1% down. Questus Real Estate selling off their portfolio Questus Real estate, a closed-end investment fund has announced the sale of its entire real estate portfolio with an estimated value of €26.30 million at the end of last year. The share of the five real estate projects comprises over 70% of the fund’s nett asset value. According to claims from the fund this is in compliance with instructions from Hanfa. Tankerska plovidba refinancing Lenac The general assembly of the Rijeka shipyard, Viktor Lenac, has opted for an increase in capital from €18.96 million to €23.02 million and invited Tankerska plovidba from Zadar to pay the entire amount. If the refinancing is implemented successfully, Tankerska plovidba will own 48.4% of Viktor Lenac shares. The shareholding of Uljanik, the largest shareholder, will decrease from 28% to 23%.
8 ::: news Umag tournament is Istrian Monte Carlo The ATP tennis tournament Studena Croatia Open, which will be held for the 22nd time in Umag from 21st to 31st July, has also attracted huge attention in neighbouring Italy. In the latest issue of the reputable Tennis Magazine it advises all tennis enthusiasts that the tournament in Umag is a ‘must see’ event. The tournament is traditionally visited by over 70,000 visitors and the arrival of the world tennis elite is of extreme importance for tourist development in Croatia. Welcoming service initiative The Croatian Tourist Board and the system of tourist boards are traditionally organising the initiative Welcoming service for tourists at the most-used border crossings. The Croatian Tourist Board will be distributing
material to tourists entering Croatia at week ends throughout the summer until 28th August. Satisfactory tourism results for the first six months Over 3.2 million tourist arrivals (11.4% up) were recorded at the Adriatic Sea and in Zagreb during the first six months this year, with over 13.7 million overnight stays (13% up) over the same period last year, according to data from the tourist boards. Almost all counties on the Adriatic and the City of Zagreb recorded a doubledigit figure increase in arrivals and overnight stays. The highest increase was recorded in SplitDalmatia County (18.6%) and Lika-Senj (14.7%). The increase in tourism turnover was generated from traditionally generating markets – Germany (+17% arrivals and +18% overnight stays), Austria (+18% arrivals and +19% overnight stays) and Slovenia (+12.7% arrivals and +15% overnight stays). 1.6 million arrivals were recorded in June, which was 20% up and about 8.3 million overnight stays, 21% up over the same month last year.
Privredni vjesnik Year IV No 0160
( over 1,000
visitors to Kulinijada in Jagodnjak
( 4 kulinijadas took place last June
A PIQUANT ATTRACTION FOR GASTRONOMIC NOMADS
Kulin as a principal tourist attraction Originated as a local event but transformed into one of economic relevance attracting tourists to the picturesque Baranja area Svetozar Sarkanjac he classic calendar does not seem to be important for ambitious farming producers in Slavonia and Baranja. They measure time according to events they consider of importance. Consequently, events summarising the harvest of the previous year have become a rule at the start of a new harvest. The quality of the produced kulin or kulen is certainly something that every farmer, particularly if his principal activity is pig farming, wished to present and provide evidence for his level
T
81 producers participated in the Kulinijada contest in Jagodnjak of success. The most illustrative evidence of previous work is to be found in increasingly popular and most visited events called kulenijadas. This year’s June calendar recorded four of the most important Croatian kulenijadas. The oldest one was in Požega (now
in its 31st year), followed by that in Otok marking its 11th anniversary, then the one organised by the Croatian Chamber of Economy – County Chamber Osijek and the final one in Jagodnjak, which marked its 10th anniversary in Baranja. The youngest event was nevertheless the most visited one. The immense importance of such events has been identified by tourist workers. A Baranja jewel One of the jewels of Baranja tourism gastronomic programme, the traditional Kulinijada in Jagodnjak, attracted over 1,000 visitors and a record number of contestants. Kulinijada was launched in 2001 as a local event for kulin producers, members of the Agricultural cooperative Naše selo and some 20 producers participated at that time. The event was shortly transformed into what currently is a professional commission for evaluation was introduced and Kulinijada considerably exceeded its local scope. Having identified its promotional tourism and economic importance, Jagodnjak Municipality and
Kulin or kulen, this is the question Even though no one will make a significant mistake by pronouncing kulen or kulin, as both refer to the same, top quality smoke-dried product made from best quality pork; nevertheless different names might be confusing. The pronunciation is determined by provenance. Sometimes different names can be used even by two neighbouring villages. Some say that kulin is the original name, whilst kulen is a more recent version. Both names are officially used even by some Slavonian associations of producers. Language specialists claim one should follow local tradition, whilst ordinary consumers of this delicacy are aware of the meaning of both terms.
Baranja Tourist Board joined forces with the agricultural cooperative Naše selo, with support from Ministry of tourism. Pig farming is critical for kulen production and in the past was the core activity of most Jagodnjak inhabitants. The current situation is completely different. New initiatives from the agricultural co-operative Naše selo could replace once extensive pig farming. Tourism development will be considerably influenced by tasteful kulin. “The co-operative is planning the construction of a plant for production and other smoke-dried products, exclusively using traditional methods, without accelerated fermentation or additives. It will be produced according to the methods used by family farms which significantly increases production expense, but is nevertheless the only way to get a top quality product such as kulin”, explained Jagodnjak Municipality Head Anđelko Balaban. Synergy of tourism and gastronomy 81 producers of smoke-dried delicacies participated in the Kulinijada this year, from Baranja and three other Slavonian Counties. The winner of the largest Kulinijada was produced by Josip Stiplošek from Darda. “Gastronomy and tourism definitely can go hand in hand and Kulinijada achieved an exceptional synergy. Consequently, Jagodnjak Municipality wishes to encourage tourism development based on gastronomy”, concluded Balaban.