Prolonged recession Luckily, banks are highly capitalised, which guarantees the system a shock-free passage through the crisis
Private sector boosts employment Domestic market remained a key revenue source at 76.8% from overall business revenue
Everything is on the table Croatia has some room left to activate measures to prevent excessive deficit
PAGES 2-3
PAGES 6-7
PAGES 14-15 2008 2009 2010 2011 2012
Croatian Business & Finance Monthly Established in 1953 Monday / 4th November/ 2013 Year VI / No 0230 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
PRE-BANKRUPTCY SETTLEMENT AGREEMENT
Three quarters of requests denied, liabilities of €0.4 billion settled Requests for Pre-Bankruptcy Settlement procedure drop significantly at the beginning of September Drago Živković he Act on Financial Transactions and Pre-Bankruptcy Settlement Agreement has been controversial even prior to its enforcement. By 4th October 2013, the expiration of the first year of its enforcement, the Financial Agency received 5,167 requests for Pre-Bankruptcy Settlement procedure with claims totalling billion. Nevertheless, the number of requests for Pre-Bankruptcy Settlement procedure has dropped significantly by the beginning of September, as under 200 new claims totalling €0.13 billion were submitted during the previous month. A considerable number of claims (4,602) were valued at under €1.32 million, and only 565 claims exceeding €1.32 million were submitted. However, irrespective of the fact that large debtors accounted for only 11% of total submissions and employed almost two thirds of the 42,437 staff working for legal or natural persons who have requested a Pre-Bankruptcy Settlement, they reported over 91% of total liabilities. A total of 915 requests or less than one fifth of all requests, were submitted at the adoption of a financial restructuring plan or by the reaching of a Pre-Bankruptcy Settlement Agreement, with 637 requests resulting in the
T
adoption of financial restructuring plan and 278 requests or 5%, in a Pre-Bankruptcy Settlement Agreement. The total value of liabilities slightly exceeded €0.4 billion of all agreements reached, with those companies reaching the PreBankruptcy Settlement Agreements employing 5,231 staff. In addition, companies employing slightly over 10,000 staff are currently striving to reach Pre-Bankruptcy Settlement Agreements whose value exceeds €1.58 billion, resulting in a settlement of over €1.97 billion, and the saving of some 15,000 jobs. Boosting effectiveness The fact that under 20% of requests have been granted or are currently being granted does not imply that the remaining requests are not being considered. FINA has tackled 4,086 requests thus far and 1,081 are currently being considered. Some 915 requests resulted in agreement or adoption of a financial restructuring plan, with 3,171 requests for Pre-Bankruptcy Settlement Agreement denied or suspended. Consequently, irrespective of FINA efficiency, on average
three quarters of requests are not granted, and thus not tackled effectively. Nevertheless, the effectiveness of the procedure has improved significantly over the past month, as the number of agreements has soared to 102, a remarkable improvement by almost 40%. Efficiency has also been greatly enhanced, as, irrespective of the influx of new requests, the number of requests that are currently being tackled has dropped by 15% since the beginning of September. The construction industry has submitted the highest number of requests for Pre-Bankruptcy Settlement procedure at €1.65 billion.
Nevertheless, the value of claims has seen only a slight increase over the past month, irrespective of a rise in the number of requests from 721 to 898. The Pre-Bankruptcy Settlement procedures for large debtors in the construction industry have already started and the new influx of requests has been submitted by small businesses whose value of liabilities is not significant. The processing industry reported claims of €1.28 billion submitted by 776 businesses employing 16,488 staff, double that compared with employment figures for the construction industry. The largest number of requests for Pre-Bankruptcy Settlement procedure has been submitted by traders – 1,216, albeit primarily small traders employing only 4,371 staff (fewer than 4 staff per business), with total liabilities standing at €0.95 billion, implying the value of liabilities has nearly halved in relation to the value of claims submitted in the construction industry.
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Privredni vjesnik Year VI No 230
OVERVIEW OF BANKING ACTIVITIES IN 2012
Prolonged recession Luckily, banks are highly capitalised, which guarantees the system a shock-free passage through the crisis. However, it is obvious we will have to wait slightly longer for market dynamics to be activated Velimir Šonje, Arhivanalitika n 2012, business activity in Croatia was characterised by a prolonged recession whose end is not visible even in the first half of 2013. It seems as if everyone – from Government through the banks and to their debtors – expected a miraculous recovery, and that the problems, piled up in balance sheets, will somehow be resolve on their own. The recovery did not happen, of course, which is why we could describe 2012 as the year of the delayed beginning of restructuring.
I
The delayed beginning of restructuring manifested in several ways: • demand for loans from the healthy part of the corporate sector and households was mainly weak, which is expected since real GDP fell 2%; • shipbuilding restructuring was approaching its end in 2012, including loans for shipyards being reclassified as state claims (€0.88 billion) and recognising shipyard guarantees as public debt; • at the end of the year, one bank sold €0.74 billion of bad loans to companies • The Financial Activities and Prebankruptcy Settlement Act was adopted, marking the start of the first procedures with the goal of solving the problems of insolvent corporate debtors; • the quality of bank lending continued to deteriorate; that is, the share of bad loans within total loans continued to grow; • the profitability of the banking system resumed its fall; • capital adequacy of Croatian banks remained at the highest level in Europe, and the system remained extremely stable. State loans remained the only dynamic segment of the credit
Corporate lending slowed during the first part of the year, entering into a negative zone in the second half portfolio, due to budget deficit financing. In relation to the same month last year, the rate of change stood below the average level of 10% through the whole of 2012. Private loans were moderately negative in relation to the year before, which is completely normal under the conditions of decreasing real salaries, growth
in unemployment and the fear of exchange rate changes. During the first part of the year, corporate lending slowed and entered into a negative zone in the second half, culminating in a 10% fall in December 2012 compared with December 2011. The mentioned weakening of corporate loans (10%) totalled over €1.58 billion in absolute numbers. Even though this figure was often presented to the public as a sign of aggravating loan contraction, it mainly concerned neutral balance operations. Actually, in 2012, €0.88 billion of shipyard loans from the corporate credit
portfolio were reclassified as state claims, and at the end of the year one bank sold €0.74 billion of bad loans. Excluding the effects of these operations, the fact remains that the nominal value of the corporate credit portfolio did not decrease significantly during 2012. However, the fall in real lending was severe, as when nominal changes are corrected for inflation, the contraction of real loans at a level of 4% per year becomes evident. Maintained deposit growth Even though loan contraction in the private sector is to be fully
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Loan portfolio deterioration Negative real movements and stagnating loan demand reflected in a continuous deterioration in the quality of the banking credit portfolio. The share of bad loans approached 15%. Bad loans, which have been piling up over the five year recession, pose two related questions: firstly, are they adequately covered with reserves, and secondly, how to set the institutional framework in order to solve them, making it easier to save companies with a future, and speeding up
the restructuring of bankruptcies CHART 1. Public, corporate and state loans of companies with an uncertain, Rate of change compared with the same month of the year before 1.2004. – 4-2013. or no, future at all. The Financial 70 % Središnja država Trgovačka društva Stanovništvo Activities and Prebankruptcy 60 Settlement Act was adopted in 50 2012 as a reply to the second question. However, by the end 40 of that year to the present time, 30 it has been impossible to rate it 20 since it has been in force for only 10 a short period. 0 Under such conditions, interest -10 margins shrank. The continuous deterioration of the credit port- -20 siječanj srpanj siječanj srpanj siječanj srpanj siječanj srpanj siječanj srpanj siječanj srpanj siječanj srpanj siječanj srpanj siječanj srpanj siječanj folio and the need to enhance re- -30 2004. 2004. 2005. 2005. 2006. 2006. 2007. 2007. 2008. 2008. 2009. 2009. 2010. 2010. 2011. 2011. 2012. 2012. 2013. serves additionally affected busi- Source: HUB Pregled br. 2 ness results. Compensations and other nett income could not re- CHART 2. Bad loan ratio: public and companies cover the lost nett income in the 1.2010.-1.2013. main part of the depositary-cred30 % iting activities since the activities of the capital market remain 25 modest, marked by the recession. In 2012, another profit decrease 20 was seen, directing the ROE trend to 4% at the end of the year, 15 which is below the yield on long10 term state bonds. Even though the formation of 5 Ukupno Trgovačka društva Stanovništvo reserves for credit losses added significant strain to the banks’ 0 31.3. 30.6. 30.9. 31.12. 31.3. 30.6. 30.9. 31.12. 31.3. 30.6. 30.9. 31.12. 31.3. 2010. 2010. 2010. 2010. 2011. 2011. 2011. 2011. 2012. 2012. 2012. 2012. 2013. results, the long lasting recession and continuous deterioration of Source: HUB Pregled br. 2 the credit portfolio raised a question of banking system stability. CHART 3. Return on Average Assets and Average Equity By the end of 2012, the regula- 4.2000.-1.2013. 2,0 % 18 % tor raised the matter of reserves 1,8 whose ratio reached 43% in rela16 tion to classified bad loans. How1,6 14 ever, the banking system proved 1,4
to be extremely stable due to the most important source of stability – capital. The capital adequacy rate reached 20.9% at the end of 2012. The share of the five biggest banks ranged around 79% in terms of capital, and around 75% in terms of assets at the end of 2012, which is almost the same result as the year before. It is interesting to note that the share of the five biggest banks in the total number of employed is considerably lower (66%). Significantly higher levels in assets than in the number of employed relate to the activities of the volume econo-
1,0
8
0,8
6
0,6
30.6.2012.
31.12.2012.
30.6.2011.
31.12.2011.
30.6.2010.
31.12.2010.
30.6.2009.
31.12.2009.
30.6.2008.
31.12.2008.
30.6.2007.
31.12.2007.
30.6.2006.
31.12.2006.
30.6.2005.
31.12.2005.
30.6.2004.
31.12.2004.
30.6.2003.
31.12.2003.
30.6.2002.
0
31.12.2002.
2
0,0
30.6.2001.
4
31.12.2001.
0,4 0,2 31.12.2000.
Capital adequacy ratio reached 20.9% by the end of 2012, one of the highest rates amongst European countries
10
ROAE
12
1,2
ROAA
expected in the conditions of a 2% GDP fall, the new government tried to act anti-cyclically. This is evident in HBOR’s balance sheet, where the portfolio expanded significantly, whilst the loans which HBOR approved though other banks grew at a modest, yet significant 2.5% rate; directly approved HBOR loans grew at a high 9.3% rate (€92 million). However, this was insufficient to leave a significant mark on total economic movements that preserved a maintained negative trend. In spite of this, bank deposits maintained a continuous, although moderate growth rate of 2.9%. Amongst the banks on the one hand, and the government and economies on the other, tension appeared, leaving a mark over the entire previous year. Bankers confirmed there was no quality demand (no good projects), and that work was on standby due to the lack of reforms they cannot influence. The government and debtors claimed interest rates were too high, and that banks were not doing enough to promote an economic recovery. However, interest rates on corporate loans decreased slightly during 2012. This was in line with the risk premium of state bonds that bankers always highlight as an important long-term baseline for interest rates. Croatia started the year with relatively low yields, which increased together with the yields of bonds of countries similar to Croatia, during the first half of the year. The end of summer marked the start of a steep premium fall. Not even the loss of the investment rating at the end of the year managed to undo the strong effect of the yield drop after September.
3
Source: HUB Pregled br. 2
mies that make it easier for the largest banks to adjust their costs to the recession. There are no bigger changes even in inside the group of the biggest banks. The first three positions on the market, according to both criteria (assets and capital) are held by Zagrebačka banka, Privredna banka and Erste Bank. Hypo Bank and Raiffeisenbank switch from fourth to fifth positions, depending on the ranking criteria: Hypo ranks four according to capital and credit portfolio, while Raiffeisenbank ranks four
according to profit, assets and deposits (even three according to the number of employees). All leading banks have extremely high capitalisation levels. However, it should be pointed out that a high capitalisation level is not only reserved for the leading banks. Even though some smaller banks were faced with problems in 2012, in the group excluding the first 10, there is a predominant number of highly stable and highly capitalised banks that found their market niches and a way to go through the crisis.
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Privredni vjesnik Year VI No 230
Ranking Table of Croatian Banks for 2 Rank
Share capital Bank
2012. 2011
HRK000
Original capital
% change
HRK000
% change
Capital adequacy coefficient (%)
rank
1
1
Zagrebačka banka
15.668.389
6,20
6.404.839
0,00
1
23,63
2
2
Privredna banka Zagreb
10.880.811
8,19
1.907.477
0,00
4
21,73
3
3
Erste und Steiermärkische Bank
6.260.136
10,08
1.698.418
0,00
5
17,41
4
4
Hypo Alpe-Adria-Bank
5.330.909
-0,67
5.208.760
0,00
2
30,19
5
5
Raiffeisenbank
4.973.513
-5,97
3.633.632
0,00
3
18,30
6
6
Societe Generale - Splitska banka
3.568.209
3,18
491.426
0,00
9
17,63
7
8
OTP banka
1.449.289
8,94
989.607
0,00
7
16,04
8
7
Sberbank
1.416.084
-9,42
1.530.668
0,00
6
23,30
9
9
Hrvatska poštanska banka
1.293.633
15,85
966.640
0,00
8
14,89
10
11
Podravska banka
359.137
8,78
267.500
0,00
13
17,00
11
13
Jadranska banka
320.018
0,18
239.246
0,00
16
15,25
12
12
Banco Popolare Croatia
315.572
-1,60
332.980
0,00
11
16,71
13
14
Štedbanka
307.438
8,41
250.000
0,00
15
34,94
14
16
Kreditna banka Zagreb
282.984
5,46
230.200
0,00
17
13,96
15
18
Centar banka
246.150
28,39
200.600
44,63
18
14,12
16
17
Istarska kreditna banka
244.089
2,98
162.800
0,00
22
15,40
17
15
Croatia banka
213.944
85,82
474.600
72,83
10
17,09
18
22
BKS Bank
208.825
55,23
200.000
66,67
20
22,18
19
21
Veneto banka
191.085
17,49
307.648
13,94
12
20,76
20
20
Slatinska banka
175.294
1,05
91.897
0,00
25
16,84
21
19
Partner banka
156.186
-10,79
89.100
0,00
26
14,14
22
24
Imex banka
118.315
-1,31
93.127
0,00
24
14,68
23
23
VABA
116.943
-5,68
176.523
0,00
21
12,16
24
27
Samoborska banka
86.328
0,36
47.636
-2,03
30
26,83
25
28
KentBank
78.865
76,79
126.707
147,34
23
18,60
26
25
Banka Kovanica
75.146
-15,65
260.764
24,79
14
10,22
27
26
Karlovačka banka
70.491
-16,79
200.573
22,02
19
12,77
28
29
Banka splitsko-dalmatinska
47.260
-7,58
48.602
0,00
29
16,44
29
30
Primorska banka
30.099
7,44
53.631
-3,26
28
40,20
30
32
Tesla štedna banka
23.028
-2,91
37.118
13,39
31
99,89
31
31
Nava banka
13.654
-45,69
72.698
0,00
27
9,17
Source: Data press, april and may 2013.
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5
012 Assets HRK000
% change
Assets per employee (HRK000)
rank
Pre-tax profit
Profit after tax
Number of employees 31.12.
Cost income ratio
Capital/ Assets x 100
Pre-profit/ Pre-profit capital x 100 assets x 100
104.134.544
0,12
1
23.710
1.103.585
887.582
4.392
45,40
15,05
7,04
1,06
68.410.776
1,38
2
18.103
1.028.110
845.559
3.779
41,90
15,91
9,45
1,50
58.518.810
2,60
3
28.407
598.161
482.709
2.060
39,00
10,70
9,56
1,02
34.693.455
-15,56
5
21.065
326.492
256.975
1.647
68,63
15,37
6,12
0,94
35.695.953
-7,19
4
16.557
432.150
364.355
2.156
51,01
13,93
8,69
1,21
26.336.240
-1,61
6
17.723
129.753
96.028
1.486
58,00
13,55
3,64
0,49
13.303.987
4,16
8
12.979
127.604
100.072
1.025
60,39
10,89
8,80
0,96
8.210.940
9,55
9
17.106
(171.710)
(140.313)
480
79,88
17,25
-
-
17.045.453
3,61
7
15.246
93.762
94.063
1.118
63,60
7,59
7,25
0,55
3.058.212
5,03
12
10.546
10.214
8.129
290
87,49
11,74
2,84
0,33
3.063.260
6,42
11
12.108
7.249
7.249
253
74,12
10,45
2,27
0,24
2.540.123
-4,17
14
8.699
3.435
934
292
81,28
12,42
1,09
0,14
1.217.167
-6,66
22
28.980
11.277
8.643
42
33,97
25,26
3,67
0,93
3.202.496
18,37
10
16.423
20.689
16.090
195
69,12
8,84
7,31
0,65
1.571.033
-1,83
18
13.314
(76.250)
(76.250)
118
110,90
15,67
-
-
2.681.664
5,54
13
11.509
21.495
17.246
233
68,39
9,10
8,81
0,80
1.980.022
5,06
16
6.923
(93.645)
(93.645)
286
(no data)
10,81
-
-
1.201.048
11,88
24
19.689
(5.551)
(5.334)
61
95,53
17,39
-
-
1.294.443
12,84
20
13.345
(16.202)
(16.202)
97
137,00
14,76
-
-
1.442.257
8,34
19
8.057
6.403
4.997
179
79,49
12,15
3,65
0,44
1.290.828
-1,61
21
11.735
(22.384)
(17.706)
110
73,77
12,10
-
-
2.106.446
10,58
15
15.154
12.960
10.263
139
58,63
5,62
10,95
0,62
1.204.271
-2,59
23
7.299
(12.699)
(12.699)
165
120,00
9,71
-
-
433.686
5,80
27
8.340
1.681
1.299
52
89,18
19,91
1,95
0,39
608.373
15,02
26
5.290
(29.249)
(29.249)
115
78,60
12,96
-
-
1.067.140
-4,84
25
8.146
(63.158)
(57.695)
131
53,39
7,04
-
-
1.781.948
-5,46
17
8.137
(25.511)
(25.511)
219
147,02
3,96
-
-
346.126
1,13
28
5.244
658
455
66
0,77
13,65
1,39
0,19
210.618
13,41
30
5.137
(9.480)
(9.480)
41
208,00
14,29
-
-
27.367
-21,41
31
1.440
(5.923)
(5.923)
19
385,90
84,15
-
-
277.315
-3,43
29
10.666
(15.130)
(15.130)
26
249,90
4,92
-
-
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Privredni vjesnik Year VI No 230
ENTREPRENEURIAL OVERVIEW OF 2012
Private sector boosts whilst public sector ra
Domestic market remained a key revenue source at 76.8%, with exports generating 16.6% (€12.97 Drago Živković n 2012 Croatian entrepreneurs eligible for income tax generated total revenue of €80.32 billion, of which €12.97 billion was export-generated (2.8% up compared with 2011). The value of imports was €12.07 billion, thus delivering a trade surplus of €0.9 billion, according to the analysis for 2012 conducted by Fina. Total entrepreneurial revenue for 2012 rose €1.21 billion (0.4%), although total expenditure increased by 1.1%, adversely affecting overall efficiency of business activity. Nett profit was €0.64 billion, a fall of 33.8% over 2011 when nett profit was €0.99 billion. 53,363 businesses produced €4.49 billion in total revenue, whilst there were 40,891 loss-making businesses; hence the total loss was upgraded to €3.83 billion. The nett profit decrease for 2012 would have been significantly larger, had there not been a price hike and government intervention in the shipbuilding industry, which subsequently showed a nett profit, with shipbuilding companies ranking amongst the top ten most profitable companies. Large businesses generated a total of €0.91 billion nett profit, with mediumsized businesses showing a total loss of €113 million and small businesses seeing a loss of €0.14 billion. As can be seen, large and medium-sized businesses were less successful in relation to 2011, whilst small businesses managed to reduce losses.
I
Investment into fixed assets Fortunately, in 2012 the value of entrepreneurial investment
Total entrepreneurial revenue rose €1.21 billion in 2012 into fixed assets stood at €4.39 billion, up 0.5% compared with 2011 with 19,870 entrepreneurs investing. Nevertheless, this increase was minimal and thus its impact on economic growth appears insignificant against the backdrop of the decline in personal consumption. However, the principal features of entrepreneurial activity in Croatia have remained comparatively unchanged: the dominant role of Zagreb (which is partly due to the statistical methods used) and a high proportion of large businesses, with private
sector, trade, processing and information-telecommunications sector, assuming the leading role. 97,254 businesses were eligible for income tax in 2012, 1,276 down over 2011. Considering entrepreneurial revenue structure, operating revenue accounted for 97.1%, which can be considered as a positive aspect of business activity, showing that entrepreneurs still mainly pursue their primary business activity. Financial revenue accounted for just 2.3% of total revenue, down some 15% over 2011. The domestic market remained the key revenue source (76.8%), with exports generating some 16.6% of revenue (€12.97 billion) of the €72.89 billion total business revenue, with compensation, subventions and other revenue
accounting for the remainder. Last year’s results are slightly more favourable compared with the multi-annual average, since exports normally account for some 14% of total revenue; this indicates that Croatian entrepreneurs managed to use an increase in foreign demand following the economic recovery of the most important Croatian trading partners. Nevertheless, only 12.8% entrepreneurs (12,430) were involved in exporting, whilst the remaining 84,824 operated exclusively in Croatia. In terms of expenditure, the structure is remarkably similar to that for the revenue structure, with operating expenditure standing at 95.3%, financial expenditure 4.2% and other expenditure for 0.5%. The share of
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7
employment, aises salaries
7 billion) of revenue, from €72.89 billion of overall business revenue
operating expenditure within total expenditure increased in relation to 2011, which is definitely a positive trend, indicating a rise in the production of goods and services. Financial expenditure fell slightly from 5.1% to 4.2% and in absolute figures by slightly over €0.66 billion, showing that entrepreneurs are slowly settling their liabilities by reducing interest rate expenditure.
Nett profits stood at €0.64 billion, 33.8% down over 2011 One of the principal features of Croatian entrepreneurs is the high level of dominance of a small number of large businesses, clearly shown in the data on
the share of the top 10 entrepreneurs (in the total profit) generating a sizeable €1.46 billion in profit, more than twice in relation to total entrepreneurial nett profit (taking into consideration the large number of loss making businesses). As opposed to previous years when the highest profits were generated by telecommunications companies, 2012 saw shipyards play a leading role, albeit showing, and merely accounting profit due to the write-off of liabilities to the state. Considering various fields of activity, 2012 was the most successful year for the processing industry, generating a nett profit of €1.07 billion. Nevertheless, that was also accounting profit due to high profits generated by the shipbuilding industry. It was followed by the ICT sector with nett profits of €0.28 billion and the professional, scientific and technical sector, accounting for €91.8 million. On the downside, the construction industry showed a loss of €0.47 billion, transportation and warehousing €0.2 billion, and the real estate sector €0.17 billion. Of 56,363 profitable companies, there were 15,554 or 27.6% companies engaged in trade, followed by those in the professional, scientific and technical sector (9,735) and processing industry (7,443). The top four loss-making areas are only slightly different: trade (10,937 companies or 26.7%), construction (5,968), professional, scientific and technical sector (4,783) and the processing industry (4,119). In 2012, private sector entrepreneurs employed 614,187 staff (an increase in employment of
2.1%) and generated a profit of €57.6 billion, nett profits of €2.88 billion and nett losses of €2.81 billion. The public sector, which generates around 10% of total revenue and employs some 14% of all employed, generated nett profits of €60.5 million, a significant uptick compared with 2011 when it showed a nett loss of €32.1million. Zagreb-based entrepreneurs showing the highest investment value In 2012, 14 counties showed an increase in revenue, with Virovitica-Podravina County the most successful (+7%). Entrepreneurs in seven counties saw a drop in revenue with Šibenik-Knin County showing the largest fall (minus 12%) and also the largest decrease in expenditure. 14 counties saw expenditure rise, with Vukovar-Srijem County ranking first with 9.9%. Generated profit by county
ranged between €12.9 million or 0.3% by Požega-Slavonia County to €2.05 billion or 45.8% for the city of Zagreb. Sisak-Moslavina County saw a surge in profit by 177.7%, but Primorje-Gorski Kotar County showed a plunge of 28.2% in relation to 2011. 12 counties showed nett profits, the difference between total profit and total loss, whilst 9 counties were in negative territory. Profit ranged between €3.02 million in Lika-Senj County and €0.43 billion in Split-Dalmatia County; losses ranged between €2.23 million in Krapina-Zagorje County and €0.17 billion in Osijek-Baranja County. Bjelovar-Bilogora County showed the best ratio of profitable companies to lossmaking companies with 68% of profitable companies and 32% loss-making companies, whereas Šibenik-Knin County showed the worst ratio with 53.4% lossmaking companies to 46.6% profitable companies. 19 counties showed the predominance of profitable businesses, whilst Šibenik-Knin and Istria County showed a prevalence of lossmaking companies. In proportion to the share of revenue and profit, the value of investment in Zagreb was the largest, followed by the three largest coastal counties and Osijek-Baranja County. The smallest counties showed the lowest value of investment. Nevertheless, BrodPosavina County saw the most significant increase in investment (70%), whilst investment in Zadar County plummeted by 47.4%.
8
Privredni vjesnik Year VI No 230
Leading Croatian exporters in 2012 (the top 100 of the 400 largest companies) Rank
Company name
Company domicile
Exports
Rank
Company name
1
INA D.D.
ZAGREB
2
PLIVA HRVATSKA D.O.O.
ZAGREB
3
BOXMARK LEATHER D.O.O.
TRNOVEC BARTOLOVEČKI
1.946.106.747
Company domicile
Exports
9.216.306.064
51
RUDNAP ENERGIJA D.O.O.
ZAGREB
325.683.874
2.369.369.127
52
CEMEX HRVATSKA D.D.
KAŠTEL SUĆURAC
320.924.884
53
FERRERO D.O.O.
ZAGREB
318.473.304
54
KRAŠ,D.D. ZAGREB
ZAGREB
305.129.342
55
SAME DEUTZ FAHR ŽETELICE D.O.O.
ŽUPANJA
304.617.805
56
CENTAR ZA KOMBINIRANI TRANSPORT ZAGREB DD
NOVI ZAGREB
301.599.140
57
SAPONIA DD
OSIJEK
298.037.460
58
OMCO CROATIA D.O.O.
HUM NA SUTLI
281.770.845
4
PETROKEMIJA DD KUTINA
KUTINA
1.923.669.979
5
ERICSSON NIKOLA TESLA D.D. ZAGREB
ZAGREB
1.633.774.257
6
ULJANIK BRODOGRADILIŠTE D.D.
PULA
1.319.938.845
7
CROATIA AIRLINES DD
ZAGREB
1.098.504.956
8
KONČAR ENERGETSKI TRANSFORMATORI D.O.O.
ZAGREB
895.680.945
59
NESTLE ADRIATIC D.O.O.
ZAGREB
263.117.543
9
BENETTON TEKSTIL D.O.O.
LABIN
804.209.701
60
TUBLA D.O.O.
ČAKOVEC
256.126.556
10
TLM TVP ZA PROIZVODNJU VALJANIH PROIZVODA D.O.O.
ŠIBENIK
799.686.952
61
CALUCEM D.O.O.
PULA
253.944.142
11
PODRAVKA D.D.
KOPRIVNICA
778.837.873
62
SLADORANA D.D.
ŽUPANJA
250.340.240
12
HSE ADRIA D.O.O.
ZAGREB
756.592.275
63
ROCKWOOL ADRIATIC D.O.O.
POTPIĆAN
245.317.258
13
TANKERSKA PLOVIDBA D.D.
ZADAR
720.420.701
64
BRODOTROGIR D.D.
TROGIR
241.529.137
14
AURO DOMUS D.O.O.
KASTAV
695.215.273
65
KOKA PERADARSKO PREHRAMBENA INDUSTRIJA DIONIČKO DRUŠTVO VARAŽDIN
VARAŽDIN
228.788.910
15
ENI CROATIA B.V. - HRVATSKA PODRUŽNICA ZAGREB
689.804.685
66
OMV HRVATSKA D.O.O.
ZAGREB
226.309.042
16
RIVIERA ADRIA D.D.
POREČ
655.261.179
67
DUBROVNIK BABIN KUK D.D.
DUBROVNIK
219.607.569
17
GEN-I ZAGREB D.O.O.
ZAGREB
629.074.390
68
EKO MEĐIMURJE D.D.
ČAKOVEC
218.921.488
18
CROSCO,NAFTNI SERVISI D.O.O.
ZAGREB
594.899.716
69
BRODOGRADILIŠTE VIKTOR LENAC D.D.
RIJEKA
213.755.307
19
CE-ZA-R D.O.O.ZAGREB
ZAGREB
593.445.818
70
JAMNICA DD
ZAGREB
213.381.975
20
EUROCABLE GROUP D.D.
ZAGREB
590.875.890
71
GORUP DOO
KLANJEC
210.964.107
21
GOLD PARTNER D.O.O.
ZAGREB
542.276.924
72
ŽITO D.O.O.
OSIJEK
206.504.428
22
VIRO TVORNICA ŠEĆERA D.D.
VIROVITICA
536.478.176
73
SIEMENS D.D.
ZAGREB
203.658.173
23
HARBURG-FREUDENBERGER BELIŠĆE D.O.O.
BELIŠĆE
533.541.295
74
BRODOSPLIT-BRODOGRADILIŠTE D.O.O.
SPLIT
202.713.152
HRVATSKA KONTROLA ZRAČNE PLOVIDBE D.O.O.
75
DUKAT D.D.
ZAGREB
190.941.768
VELIKA GORICA
190.811.019
24 25
HŽ CARGO D.O.O.
ZAGREB
527.636.068
76
DRAVA INTERNATIONAL D.O.O.
OSIJEK
515.467.308
77
AGROKOR-TRGOVINA D.D.
ZAGREB
190.191.781
78
AGIT D.O.O.
ZAGREB
190.083.564
79
LOREAL ADRIA D.O.O.
ZAGREB
189.359.840
80
ADRIATICA DUNAV D.O.O.
VUKOVAR
188.450.968
26
HRVATSKI TELEKOM D.D.
ZAGREB
512.672.642
27
KONČAR DISTRIBUTIVNI I SPECIJALNI TRANSFORMATORI D.D.
ZAGREB
508.791.164
28
BRODOGRAĐEVNA INDUSTRIJA 3.MAJ D.D.
RIJEKA
505.306.945
81
RADIN GRAFIKA D.O.O.
SV. NEDJELJA
29
MAISTRA D.D.
ROVINJ
493.158.459
82
VIPNET D.O.O.
ZAGREB
187.111.521
30
AD PLASTIK D.D.
SOLIN
491.971.185
83
JADRANSKI NAFTOVOD DD
ZAGREB
186.948.533
187.933.125
31
VETROPACK STRAŽA TVORNICA STAKLA D.D. HUM NA SUTLI
477.909.243
84
SIPRO D.O.O. UMAG
UMAG
185.717.368
32
HS PRODUKT D.O.O.
KARLOVAC
468.934.305
85
KONČAR GENERATORI I MOTORI D.D.
ZAGREB
184.914.544
33
YTRES D.O.O.
DONJI KNEGINEC
468.543.458
86
CEDEVITA D.O.O.
ZAGREB
183.514.337
34
ELEKTRO-KONTAKT D.D.
ZAGREB
463.096.752
87
ABB D.O.O
ZAGREB
182.842.565
35
ALUFLEXPACK NOVI D.O.O.
ZADAR
453.273.833
36
RENAULT NISSAN HRVATSKA D.O.O.
ZAGREB
441.143.465
88
ŠERIF EXPORT-IMPORT D.O.O.
ZAGREB SUSEDGRAD
182.365.939
37
JGL D.D.
RIJEKA
439.939.933
89
DOK-ING D.O.O.
ZAGREB
179.543.152
38
TDR D.O.O.
ROVINJ
399.241.643
90
ZVIJEZDA D.D.
ZAGREB
177.086.735
KONZUM D.D.
ZAGREB
176.420.274
39
EXPORTDRVO D.D.
ZAGREB
388.622.327
91
40
P.P.C. BUZET D.O.O.
BUZET
385.540.453
92
KNAUF INSULATION D.O.O.
NOVI MAROF
173.620.563
DALEKOVOD PROIZVODNJA D.O.O.
DUGO SELO
173.590.230
41
M SAN GRUPA D.D.
ZAGREB
384.042.741
93
42
PLAVA LAGUNA D.D.
POREČ
383.824.520
94
ZRAČNA LUKA DUBROVNIK D.O.O.
ČILIPI
170.952.438
43
BILFINGER ĐURO ĐAKOVIĆ MONTAŽA D.O.O. SLAVONSKI BROD
380.972.503
95
BRODOSPAS DD
SPLIT
170.347.595
44
BELIŠĆE D.D.
BELIŠĆE
379.692.959
96
VRBOVEC
170.046.986
45
ATLANTSKA PLOVIDBA D.D.
DUBROVNIK
379.594.890
PIK VRBOVEC - MESNA INDUSTRIJA D.D. VRBOVEC
46
DALEKOVOD D.D.
ZAGREB
373.598.997
97
INTERENERGO D.O.O.
ZAGREB
167.886.650
47
ALSTOM HRVATSKA D.O.O.
KARLOVAC
347.511.291
98
DIV D.O.O. TVORNICA VIJAKA
SAMOBOR
167.376.254
48
TVORNICA ŠEĆERA OSIJEK DOO
OSIJEK
340.957.902
99
SCOTT BADER D.O.O.
ZAGREB
166.117.666
49
ISTRATURIST UMAG D.D.
UMAG
335.140.840
100
LPT D.O.O.
PRELOG
165.551.968
50
ĐURO ĐAKOVIĆ TERMOENERGETSKA POSTROJENJA D.O.O.
SLAVONSKI BROD
332.509.689 Source: Bonitet.hr
www.privredni.hr Business & Finance Weekly
9
Leading Croatian importers in 2012 (the top 100 of the 400 largest companies) Rank
Company name
Company domicile
1
HRVATSKA ELEKTROPRIVREDA D.D.
ZAGREB
2
OMV HRVATSKA D.O.O.
ZAGREB
3
PLIVA HRVATSKA D.O.O.
4
BOXMARK LEATHER D.O.O.
Imports
Rank
Company name
Company domicile
Imports
3.889.614.282
51
CROSCO,NAFTNI SERVISI D.O.O.
ZAGREB
2.492.817.376
52
ELEKTRO-KONTAKT D.D.
ZAGREB
267.961.095
ZAGREB
1.705.214.215
53
PEUGEOT HRVATSKA D.O.O.
ZAGREB
266.677.444
TRNOVEC BARTOLOVEČKI
1.691.843.570
54
DIV D.O.O. TVORNICA VIJAKA
SAMOBOR
263.344.119
55
TELE2 D.O.O.
ZAGREB
260.934.693 253.138.252
268.158.673
5
PETROL D.O.O.
ZAGREB
1.323.524.877
56
ZVIJEZDA D.D.
ZAGREB
6
KONZUM D.D.
ZAGREB
1.162.556.491
57
GORENJE ZAGREB D.O.O.
ZAGREB
244.777.775
7
ERICSSON NIKOLA TESLA D.D. ZAGREB
ZAGREB
1.144.268.611
58
ALUFLEXPACK NOVI D.O.O.
ZADAR
244.185.943
8
LIDL HRVATSKA D.O.O. K.D.
VELIKA GORICA
996.515.067
59
INA D.D.
ZAGREB
243.194.500
9
M SAN GRUPA D.D.
ZAGREB
987.581.570
60
KAUFLAND HRVATSKA K.D.
ZAGREB
236.228.104
10
HRVATSKI TELEKOM D.D.
ZAGREB
965.487.313
61
ANTUNOVIĆ TA D.O.O.
ZAGREB
236.000.241
11
P.Z.AUTO D.O.O.
VELIKA GORICA
892.858.904
62
DUKAT D.D.
ZAGREB
231.408.031
12
PETROKEMIJA DD KUTINA
KUTINA
848.036.436
63
HENKEL CROATIA D.O.O.
ZAGREB
231.225.334
13
MEDIKA D.D.
ZAGREB
837.294.911
64
JAMNICA DD
ZAGREB
228.108.170
14
TLM TVP ZA PROIZVODNJU VALJANIH PROIZVODA D.O.O.
ŠIBENIK
835.560.618
65
VINDIJA D.D. VARAŽDIN
VARAŽDIN
225.697.804
15
LUKOIL CROATIA D.O.O.
ZAGREB
759.501.755
66
BIODIZEL VUKOVAR D.O.O.
VUKOVAR
224.565.283
16
PHOENIX FARMACIJA D.D.
ZAGREB
752.135.454
67
PRVO PLINARSKO DRUŠTVO
VUKOVAR
214.642.396
17
HSE ADRIA D.O.O.
ZAGREB
750.180.297
68
P.P.C. BUZET D.O.O.
BUZET
204.935.843
18
GEN-I ZAGREB D.O.O.
ZAGREB
655.932.538
19
MEDICAL INTERTRADE D.O.O.
SVETA NEDELJA
593.020.565
20
ULJANIK BRODOGRADILIŠTE D.D.
PULA
21
AGROKOR-TRGOVINA D.D.
ZAGREB
22
OKTAL PHARMA D.O.O.
ZAGREB
23
TE PLOMIN D.O.O.
PLOMIN
24
ĐURO ĐAKOVIĆ SPECIJALNA VOZILA D.D.
SLAVONSKI BROD
25
VETROPACK STRAŽA TVORNICA STAKLA D.D.
HUM NA SUTLI
444.095.880
26
LEDO D.D.
ZAGREB
421.681.032
27
LESNINA H. D.O.O.
KUKULJANOVO
418.010.628
28
PODRAVKA D.D.
KOPRIVNICA
417.551.659
29
STROJOPROMET - ZAGREB D.O.O.
ŠENKOVEC
400.218.520
30
PIK VRBOVEC - MESNA INDUSTRIJA D.D. VRBOVEC
VRBOVEC
399.000.166
31
KONČAR ENERGETSKI TRANSFORMATORI D.O.O.
ZAGREB
397.938.254
32
RUDNAP ENERGIJA D.O.O.
ZAGREB
395.126.090
33
PROCTER & GAMBLE D.O.O.
ZAGREB
391.388.057
34
VIRO TVORNICA ŠEĆERA D.D.
VIROVITICA
35
NESTLE ADRIATIC D.O.O.
ZAGREB
69
BRODOMERKUR TRGOVINA I USLUGE DD
SPLIT
203.836.053
70
C&A MODA TRGOVINA D.O.O.
ZAGREB
203.233.543
585.765.593
71
KOKA PERADARSKO PREHRAMBENA INDUSTRIJA DIONIČKO DRUŠTVO VARAŽDIN
VARAŽDIN
202.585.603
571.251.621
72
VULKAL D.O.O.
ZAGREB
193.343.312
498.310.071
73
PLODINE D.D.
RIJEKA
192.680.314
495.017.187
74
BELJE D.D.
DARDA
190.694.352
494.450.040
75
TOMIĆ & CO. D.O.O.
ZAGREB
184.854.519
76
SPAR HRVATSKA D.O.O.
ZAGREB
182.631.920
77
VAMACO M.V. D.O.O.
ZAGREB
181.365.383
78
MICROLINE D.O.O.
ZAGREB
180.653.748
79
MERCATOR - H D.O.O.
SESVETE
180.410.841
80
JT INTERNATIONAL ZAGREB D.O.O.
ZAGREB
81
FERO-TERM
DONJI STUPNIK
170.060.018
82
LOREAL ADRIA D.O.O.
ZAGREB
166.194.269
83
EUROTRADE D.O.O.
ROVINJ
161.900.379
84
KRAŠ,D.D. ZAGREB
ZAGREB
161.639.020
85
HRVATSKA KONTROLA ZRAČNE PLOVIDBE D.O.O.
VELIKA GORICA
161.508.488
374.133.597
86
ABB D.O.O
ZAGREB
156.688.228
360.822.002
87
GAVRILOVIĆ D.O.O.
PETRINJA
156.664.111
88
ATLANTIC TRADE D.O.O.
ZAGREB
156.661.464
89
METRO CASH & CARRY D.O.O.
ZAGREB
155.841.724
90
JGL D.D.
RIJEKA
155.503.908
91
TUBLA D.O.O.
ČAKOVEC
155.386.320
STANIĆ D.O.O.
KERESTINEC, SVETA NEDJELJA
153.150.178
177.316.139
36
VIPNET D.O.O.
ZAGREB
356.862.721
37
KONČAR DISTRIBUTIVNI I SPECIJALNI TRANSFORMATORI D.D.
ZAGREB
355.194.536
38
YTRES D.O.O.
DONJI KNEGINEC
354.009.282
39
KRKA-FARMA D.O.O.
ZAGREB
339.834.402
40
AWT INTERNATIONAL D.O.O.
ZAGREB
338.631.024
41
DM-DROGERIE MARKT D.O.O.
ZAGREB
316.144.849
93
NOVO NORDISK HRVATSKA D.O.O.
ZAGREB
152.855.033
42
SIEMENS D.D.
ZAGREB
308.475.776
94
TETRA PAK D.O.O.
ZAGREB
150.794.067
43
TDR D.O.O.
ROVINJ
306.976.504
95
SLADORANA D.D.
ŽUPANJA
149.831.387
44
FRANCK D.D
ZAGREB
303.219.187
96
PACIFIC FRUIT LIMITED
10000 ZAGREB
148.518.801
298.444.835
97
SPORTINA DOO
ZAGREB
147.636.330
GUMIIMPEX-GRP D.D.
VARAŽDIN
146.277.050
45
BAUHAUS-ZAGREB K.D.
ZAGREB
92
46
AD PLASTIK D.D.
SOLIN
294.671.818
98
47
RECRO D.D.
ZAGREB
290.855.149
99
BELIŠĆE D.D.
BELIŠĆE
145.845.962
100
SIPRO D.O.O. UMAG
UMAG
141.747.930
48
MÜLLER TRGOVINA ZAGREB D.O.O.
ZAGREB
289.090.000
49
SAPONIA DD
OSIJEK
281.165.518
50
CITROEN HRVATSKA D.O.O.
ZAGREB
273.531.559
Source: Boniteti.hr
10
Privredni vjesnik Year VI No 230
Top 50 largest companies in 2012 RANKING BY TOTAL REVENUES
NUMBER OF EMPLOYEES
2012.
2011.
2010.
COMPANY NAME, DOMICILE AND ADDRESS
1
1
1
INA D.D.
ZAGREB
AVENIJA VEĆESLAVA HOLJEVCA 10
2
3
3
HRVATSKA ELEKTROPRIVREDA D.D.
ZAGREB
ULICA GRADA VUKOVARA 37
TOTAL REVENUE
8.559
27.539.856.250
415
13.736.996.191 13.501.818.605
3
2
2
KONZUM D.D.
ZAGREB
M.ČAVIĆA 1A
11.437
4
5
5
PRIRODNI PLIN D.O.O.
ZAGREB
ŠUBIĆEVA 29
26
7.533.641.362
5
4
4
HRVATSKI TELEKOM D.D.
ZAGREB
SAVSKA CESTA 32
5.382
7.229.249.565
2.192
4.535.560.794
61
4.281.209.817
6
7
6
HEP- PROIZVODNJA D.O.O.
ZAGREB
ULICA GRADA VUKOVARA 37
7
6
9
OMV HRVATSKA D.O.O.
ZAGREB
JOSIPA MAROHNIČA 1
8
8
8
HEP-OPERATOR DISTRIBUCIJSKOG SUSTAVA D.O.O.
ZAGREB
ULICA GRADA VUKOVARA 37
8.911
4.246.717.709
9
9
7
ZAGREBAČKI HOLDING D.O.O.
ZAGREB
ULICA GRADA VUKOVARA 41
11.623
3.841.994.781
10
10
39
BRODOSPLIT-BRODOGRADILIŠTE D.O.O.
SPLIT
PUT SUPAVLA 19
2.088
3.346.357.077
11
17
14
PLIVA HRVATSKA D.O.O.
ZAGREB
PRILAZ BARUNA FILIPOVIĆA 25
1.717
3.316.678.772
12
11
12
TISAK D.D.
ZAGREB
SLAVONSKA AVENIJA 11A
3.124
3.306.441.352
13
13
16
PLODINE D.D.
RIJEKA
RUŽIĆEVA 29
2.861
3.192.467.560
14
14
17
PETROKEMIJA DD KUTINA
KUTINA
ALEJA VUKOVAR 4
2.320
3.030.080.076
15
12
11
VIPNET D.O.O.
ZAGREB
VRTNI PUT 1
16
16
15
VINDIJA D.D. VARAŽDIN
VARAŽDIN
MEĐIMURSKA 6
17
22
22
PETROL D.O.O.
ZAGREB
OREŠKOVIĆEVA 6 H
18
19
21
LIDL HRVATSKA D.O.O. K.D.
VELIKA GORICA
ULICA KNEZA LJUDEVITA POSAVSKOG 53
1.330
2.631.411.798
19
15
13
MERCATOR - H D.O.O.
SESVETE
LJUDEVITA POSAVSKOG 5
2.919
2.560.093.736
20
20
20
KAUFLAND HRVATSKA K.D.
ZAGREB
VILE VELEBITA 6
2.438
2.533.776.643
21
24
23
MEDIKA D.D.
ZAGREB
CAPRAŠKA 1
337
2.175.645.088
22
75
174
BRODOTROGIR D.D.
TROGIR
PUT BRODOGRADITELJA 16
23
23
25
ORBICO D.O.O.
ZAGREB
KOURAŠKA 69
937
2.961.646.761
1.085
2.809.824.740
553
2.631.844.773
1.179
2.171.984.313
492
2.169.323.055
24
21
18
HRVATSKE ŠUME D.O.O.
ZAGREB
LJUDEVITA FARKAŠA VUKOTINOVIĆA 2
8.465
2.087.342.861
25
30
33
BOXMARK LEATHER D.O.O.
TRNOVEC BARTOLOVEČKI
GOSPODARSKA 12
2.933
2.032.196.073
26
18
8321
BRODOGRAĐEVNA INDUSTRIJA 3.MAJ D.D.
RIJEKA
LIBURNIJSKA 3
1.942
1.999.505.367
27
27
31
SPAR HRVATSKA D.O.O.
ZAGREB
SLAVONSKA AVENIJA 50
1.693
1.987.653.219
28
62
52
ERICSSON NIKOLA TESLA D.D. ZAGREB
ZAGREB
KRAPINSKA 45
1.600
1.948.038.216
3.495
1.947.335.583
285
1.936.683.458
29
26
26
PODRAVKA D.D.
KOPRIVNICA
ANTE STARČEVIĆA 32
30
28
24
PHOENIX FARMACIJA D.D.
ZAGREB
OZALJSKA 95
31
34
36
PIK VRBOVEC - MESNA INDUSTRIJA D.D. VRBOVEC
VRBOVEC
ZAGREBAČKA ULICA 148
1.601
1.867.615.533
32
25
19
METRO CASH & CARRY D.O.O.
ZAGREB
JANKOMIR 31
1.078
1.846.018.739
33
37
30
AGROKOR-TRGOVINA D.D.
ZAGREB
TRG DRAŽENA PETROVIĆA 3
34
1.836.654.552
34
29
27
DUKAT D.D.
ZAGREB
MARIJANA ČAVIĆA 9
1.326
1.787.407.353
35
55
51
TOMMY D.O.O.
SPLIT
DOMOVINSKOG RATA 93
1.872
1.782.327.101
36
31
40
CROATIA AIRLINES DD
ZAGREB
BANI 75B, BUZIN
1.033
1.775.469.921
37
43
74
LUKOIL CROATIA D.O.O.
ZAGREB
ULICA GRADA VUKOVARA 284
345
1.740.635.882
38
32
44
BELJE D.D.
DARDA
SVETOG IVANA KRSTITELJA 1A
1.562
1.694.903.426
39
41
34
DM-DROGERIE MARKT D.O.O.
ZAGREB
KOVINSKA 5A
1.077
1.628.775.505
40
38
28
HP-HRVATSKA POŠTA D.D.
ZAGREB
JURIŠIĆEVA 13
10.060
1.594.189.327
41
35
67
ŽITO D.O.O.
OSIJEK
ĐAKOVŠTINA 3
525
1.573.067.398
42
40
70
TIFON D.O.O.
ZAGREB
A.VON. HUMBOLDTA 4
558
1.562.419.836
43
49
43
HEP OPERATOR PRIJENOSNOG SUSTAVA D.O.O.
ZAGREB
KUPSKA 4
44
44
38
MEDICAL INTERTRADE D.O.O.
SVETA NEDELJA
DR. FRANJE TUĐMANA BR. 3
45
48
37
BILLA D.O.O.
ZAGREB
JADRANSKA AVENIJA 2
1.277
1.487.099.125
46
33
10
ULJANIK BRODOGRADILIŠTE D.D.
PULA
FLACIUSOVA 1
1.928
1.470.398.203
47
45
32
TDR D.O.O.
ROVINJ
OBALA V.NAZORA 1
48
47
41
HRVATSKA RADIOTELEVIZIJA
ZAGREB
PRISAVLJE 3
49
39
46
AGROKOR D.D.
ZAGREB
TRG D.PETROVIĆA 3
290
1.433.163.284
50
58
54
GRADSKA PLINARA ZAGREB - OPSKRBA D.O.O.
ZAGREB
RADNIČKA CESTA 1
115
1.392.190.824
Source: Boniteti.hr
1.177
1.545.158.574
376
1.539.279.221
524
1.467.878.148
3.288
1.446.812.563
www.privredni.hr Business & Finance Weekly
REVENUE FROM EXPORTS
RANK
11
AFTER-TAX PROFIT
RANK
ASSET VALUE
RANK
CAPITAL AND RESERVES
RANK
SHARE OF PROFITS IN TOTAL REVENUE
SHARE OF PROFITS IN TOTAL ASSETS
REVENUE FROM IMPORTS
9.216.306.064
1
1.323.177.413
4
27.445.017.228
3
15.502.316.740
3
4,805%
4,821%
243.194.500
117.890.626
123
309.310.233
11
29.697.756.220
2
20.306.239.024
2
2,252%
1,042%
3.889.614.282
176.420.274
91
204.681.191
15
10.522.834.586
10
2.719.888.121
10
1,516%
1,945%
1.162.556.491
20.871.797
196
0
303
2.442.524.353
32
-1.827.292.643
399
0,000%
0,000%
0
512.672.642
26
1.680.044.488
3
13.121.038.608
7
11.029.426.093
4
23,240%
12,804%
965.487.313
0
297
0
303
10.718.462.440
9
-14.456.242
375
0,000%
0,000%
14.392.957
226.309.042
66
32.230.051
84
1.167.981.110
72
889.118.598
37
0,753%
2,759%
2.492.817.376
0
297
425.436.319
9
15.920.183.949
5
560.980.203
62
10,018%
2,672%
23.055
3.084.449
247
0
303
20.873.552.446
4
6.701.959.280
5
0,000%
0,000%
3.272.244
202.713.152
74
2.666.646.339
1
883.094.231
105
317.061.948
99
79,688%
301,966%
108.725.624
2.369.369.127
2
676.683.656
6
7.871.273.129
11
3.744.607.818
8
20,402%
8,597%
1.705.214.215
17.450.203
201
18.868.592
115
815.880.692
112
287.632.451
104
0,571%
2,313%
127.525.532
0
297
39.901.653
70
3.069.251.181
23
366.607.647
88
1,250%
1,300%
192.680.314 848.036.436
1.923.669.979
4
0
303
1.932.592.285
42
577.937.645
58
0,000%
0,000%
187.111.521
82
371.427.618
10
2.985.496.150
24
825.638.618
39
12,541%
12,441%
356.862.721
165.196.920
101
19.972.524
111
2.082.384.822
40
686.785.025
46
0,711%
0,959%
225.697.804
2.688.293
250
7.156.007
187
1.580.064.201
51
609.604.453
53
0,272%
0,453%
1.323.524.877
0
297
0
303
3.173.353.743
22
2.365.933.224
11
0,000%
0,000%
996.515.067
34.641
293
0
303
3.270.309.193
21
1.148.540.066
26
0,000%
0,000%
180.410.841
0
297
0
303
2.091.196.241
39
980.346.122
33
0,000%
0,000%
236.228.104
1.689.794
256
34.429.405
77
1.876.996.548
44
343.421.596
91
1,582%
1,834%
837.294.911
241.529.137
64
1.808.672.272
2
196.532.671
282
141.853.471
174
83,273%
920,291%
39.236.335
37.816.310
178
0
303
772.761.134
116
125.457.766
187
0,000%
0,000%
0
100.326.917
131
11.821.127
149
2.286.233.311
34
1.254.501.769
24
0,566%
0,517%
1.450.622
1.946.106.747
3
98.778.266
34
1.058.138.197
84
607.359.017
55
4,861%
9,335%
1.691.843.570
505.306.945
28
1.183.090.687
5
1.046.387.012
86
830.242.767
38
59,169%
113,064%
317.449
0
297
0
303
1.104.111.259
81
112.464.572
198
0,000%
0,000%
182.631.920
1.633.774.257
5
126.099.091
27
1.155.014.637
73
754.105.074
44
6,473%
10,918%
1.144.268.611
778.837.873
11
0
303
2.565.136.089
29
1.129.865.799
27
0,000%
0,000%
417.551.659
188.101
285
11.039.138
154
1.485.815.095
56
311.510.132
101
0,570%
0,743%
752.135.454
170.046.986
96
98.830.347
33
1.331.698.214
65
513.719.459
70
5,292%
7,421%
399.000.166
764.635
272
16.030.098
125
299.714.258
224
91.703.126
210
0,868%
5,348%
155.841.724
190.191.781
77
33.034.403
80
1.078.228.136
83
41.737.187
283
1,799%
3,064%
571.251.621
190.941.768
75
75.320.241
38
1.524.762.936
54
1.095.959.909
28
4,214%
4,940%
231.408.031 95.960.578
0
297
23.042.014
101
789.692.665
114
48.032.506
269
1,293%
2,918%
1.098.504.956
7
0
303
1.126.195.974
75
143.404.589
172
0,000%
0,000%
68.496.911
26.104.929
192
0
303
502.688.737
154
-144.423.135
390
0,000%
0,000%
759.501.755
56.418.010
159
0
303
3.890.977.090
17
1.067.071.119
30
0,000%
0,000%
190.694.352
1.482.350
259
102.168.854
31
367.691.156
197
216.930.228
130
6,273%
27,787%
316.144.849
43.130.530
171
0
303
1.472.054.922
58
608.084.387
54
0,000%
0,000%
25.790.124
206.504.428
72
45.771.082
63
1.754.333.747
48
646.478.327
52
2,910%
2,609%
79.838.543
0
297
0
303
659.601.299
126
363.638.656
89
0,000%
0,000%
0
41.392.528
174
203.259.843
16
5.839.224.674
14
218.843.843
129
13,155%
3,481%
0
2.469.464
252
23.633.625
100
1.191.953.695
71
73.042.300
227
1,535%
1,983%
593.020.565
0
297
0
303
433.598.777
175
14.014.810
336
0,000%
0,000%
96.087.909
1.319.938.845
6
0
303
1.506.936.909
55
22.460.589
324
0,000%
0,000%
585.765.593
399.241.643
38
227.685.619
13
2.427.765.236
33
1.305.342.100
23
15,511%
9,378%
306.976.504
14.308.217
208
0
303
955.062.742
95
140.392.568
176
0,000%
0,000%
126.805.303
39.317.905
177
0
303
15.424.994.316
6
2.178.080.813
14
0,000%
0,000%
0
0
297
8.001.856
180
393.758.773
189
73.010.826
228
0,575%
2,032%
0
12
Privredni vjesnik Year VI No 230
LENDING IN 2012
Lending to the state increased to 76.24% Total loans exceeded €37.5 billion, a 2.39% decrease over the previous year otal lending approved by banks to the state, the economy and the gneral public exceeded €37.5 billion last year, a 2.39% decrease compared with the year before. According to data, loans approved by the banks to the economy increased, whilst those approved to the general public decreased. Last year, same as the year before, the majority of lending was approved to the public (€16.6 billion) a 1.19% decrease in relation to 2011. On the other hand, the economy borrowed €14.3 billion or 0.87% more compared with 2011 (€14.2
T
billion). Over €5.7 billion was approved to the state, which is also an increase compared with 2011 (76.24%). Zagrebačka banka approved the highest amount of loans, (over €10 billion or 1.72% more in relation to 2011). Privredna banka Zagreb followed with an increase of 1.41% or over €6.5 billion, and Erste & Steiermärkische Bank followed with over €5.6 billion or 0.78% more. Concerning lending to the economy, Zagrebačka banka approved the highest level of lending – €3.4 billion or 82.17% more on a year-on-year level.
Approved loans (HRK000) Bank Banco Popolare Croatia Banka Kovanica Banka splitsko-dalmatinska BKS Bank Centar banka Croatia banka Erste und Steiermärkische Bank Hrvatska poštanska banka Hypo Alpe-Adria-Bank Imex banka Istarska kreditna banka Jadranska banka Karlovačka banka KentBank Kreditna banka Zagreb Međimurska banka Nava banka OTP banka Partner banka Podravska banka Primorska banka Privredna banka Zagreb Raiffeisenbank Samoborska banka Sberbank Slatinska banka Societe Generale - Splitska banka Štedbanka Tesla štedna banka VABA Veneto banka Zagrebačka banka Total (without Croatia bank):
Total % 2011. 2012. change 1.945.270 1.914.545 -1,58 913.910 901.947 -1,31 247.846 229.064 -7,58 712.273 776.427 9,01 1.266.357 1.255.883 -0,83 n.p. n.p. n.p. 42.306.370 42.637.502 0,78 10.520.638 11.723.788 11,44 32.563.989 25.948.561 -20,32 1.318.895 1.296.870 -1,67 1.521.651 1.545.035 1,54 1.656.435 1.854.194 11,94 1.040.654 924.408 -11,17 224.262 263.630 17,55 1.632.633 1.850.900 13,37 1.568.929 251.981 240.814 -4,43 9.314.716 9.427.969 1,22 1.033.595 970.998 -6,06 2.079.874 1.974.729 -5,06 78.045 88.324 13,17 48.768.737 49.457.963 1,41 27.717.242 25.384.111 -8,42 182.262 203.867 11,85 5.548.565 6.045.326 8,95 719.216 832.961 15,82 19.748.966 18.931.031 -4,14 1.136.464 1.033.464 -9,06 12.616 22.620 79,30 848.688 759.280 -10,53 654.511 753.954 15,19 75.017.154 76.311.039 1,72 292.552.744 285.561.204 -2,39
To the state % 2011. 2012. change n.p. n.p. n.p. 5.542.354 6.715.522 21,17 1.136.906 2.653.056 133,36 3.262.463 3.490.870 7,00 78.048 42.086 -46,08 3.383 45.558 1.246,67 5.878 5.417 -7,84 523 92 -82,41 208.801 468.007 505.532 8,02 6.967.791 7.241.595 3,93 3.303.508 2.880.848 -12,79 188.626 132.871 -29,56 16.691 22.625 35,55 2.501.318 2.766.102 10,59 9.068 11.536 27,22 1.022.280 17.044.654 1.567,32 24.715.645 43.558.364 76,24
To the economy % 2011. 2012. change 602.228 404.508 -32,83 452.371 407.899 -9,83 79.796 64.239 -19,50 644.207 691.826 7,39 1.011.950 1.054.153 4,17 n.p. n.p. n.p. 18.675.024 17.884.673 -4,23 5.875.686 5.161.356 -12,16 14.945.395 8.987.747 -39,86 1.166.078 1.062.254 -8,90 878.156 912.644 3,93 1.287.101 1.396.633 8,51 554.058 423.878 -23,50 51.774 65.158 25,85 1.296.156 1.348.762 4,06 470.018 167.804 153.416 -8,57 2.964.097 2.830.904 -4,49 857.408 796.520 -7,10 1.448.669 1.359.204 -6,18 39.374 56.032 42,31 15.840.540 15.712.679 -0,81 11.707.391 10.221.093 -12,70 82.012 106.710 30,12 1.981.289 2.610.808 31,77 278.665 387.845 39,18 8.057.778 6.755.304 -16,16 979.230 853.636 -12,83 7.758 14.426 85,95 606.448 544.914 -10,15 541.348 613.115 13,26 14.116.248 25.715.563 82,17 107.666.057 108.597.899 0,87
Other 2011. 2012. 6.860 6.624 32.066 23.555 11.606 13.947 6.988 5.702 n.p. n.p. 170.714 104.268 187.167 139.650 600.774 784.850 6.370 77.842 20.583 38.540 30.420 102.939 9.985 6.852 5.754 57.177 227.432 31.776 355 1.500 120.001 8.063 17.914 20.201 37.099 8.846 7.778 1.385.845 1.161.384 513.259 668.009 2.598 2.508 286.152 281.012 16.509 16.021 452.614 627.706 77.618 102.696 4.500 3.400 7.386 7.044 3.317 3.216 28.634.468 2.750.397 32.591.084 7.348.773
% change -3,44 -26,54 20,17 -18,40 n.p. -38,92 -25,39 30,64 1.122,01 87,24 238,39 -16,02 297,77 322,54 122,18 83,65 -12,07 -16,20 30,15 -3,46 -1,80 -2,96 38,68 32,31 -24,44 -4,63 -3,04 -90,39 -77,45
To the public % 2011. 2012. change 1.336.182 1.503.413 12,52 429.473 470.493 9,55 168.050 164.825 -1,92 56.460 70.654 25,14 247.419 196.028 -20,77 n.p. n.p. n.p. 17.918.278 17.933.039 0,08 3.320.879 3.769.726 13,52 13.755.357 12.685.094 -7,78 146.447 156.774 7,05 544.864 551.765 1,27 335.531 309.064 -7,89 480.718 485.128 0,92 165.113 192.626 16,66 279.300 274.706 -1,64 858.334 83.822 85.898 2,48 5.882.612 5.971.532 1,51 168.124 156.564 -6,88 611.004 578.426 -5,33 29.825 24.514 -17,81 24.574.561 25.342.305 3,12 12.193.084 11.614.161 -4,75 97.652 94.649 -3,08 3.092.498 3.020.635 -2,32 407.351 406.470 -0,22 8.737.256 8.781.919 0,51 79.616 77.132 -3,12 358 4.794 1.239,11 225.786 195.786 -13,29 109.846 137.623 25,29 31.244.158 30.800.425 -1,42 127.579.958 126.056.168 -1,19
www.privredni.hr Business & Finance Weekly
13
( 1% GDP growth – PBZ outlook for 2014
( 0.9% GDP fall – PBZ outlook for 2013
PBZ MACROECONOMIC OUTLOOK
When the environment improves, the situation for Croatia will also improve According to Marko Škreb, Croatia cannot expect to exit the crisis too soon, and there is no magic wand that would solve its problems over night ernment will have to cut what is obviously an excessive budget deficit. If the deadlines are too short, significant budget cuts will be required, followed by a fall in spending during next year that could push GDP down. Cuts will be inevitable, since it is not realistic to have welfare rights equal to Norway, while GDP per capita is almost seven times smaller.
Drago Živković t is always difficult to predict, but this is often expected from economists, especially when such predictions equate to growth and GDP fall. However, the complexity of this task should not be overlooked, since GDP is the sum of the market value of all goods and services produced. Since, in the case of Croatia, tens of thousands of entrepreneurs and millions of spenders participate in the creation of these goods and services, it is quite impossible to give a precise outlook for their behaviour. Notwithstanding, pressured by both public and media, economists give predictions, but they are considerably different due to many unknown factors. For example, the outlook range of Croatian GDP for the forthcoming year is between +1.5% and -1%. Although the Chief Economist at Privredna Banka Zagreb, Marko Škreb, is known for his pessimistic outlook, he is closer to the upper value, that is, he predicts 1% growth in 2014, after a 0.9% fall for this year.
I
Global growth Škreb does not regard this crisis as a normal cyclical crisis, but rather a structured one that only few predicted. The old model of growth is spent, and the world (and Croatia) is still looking for a new one. Therefore, we should not expect we would exit the crisis soon, and there is no magic wand that would solve Croatian problems over night, said the exHNB Governor.
The good news is that everyone is predicting growth. The International Monetary Fund predicts 3.6% growth for the global economy, 1.3% for the EU, and 1.5% for Croatia. However, in the case of Croatia there has been one big
uncertainty, which is now becoming a certainty, and that is we will enter the Excessive Budget Procedure. Only after entering this procedure of the European Commission, will we find out by when and how fast the Gov-
IMF as a precaution Škreb is one of those rare economists that promotes co-operation with the Internationally Monetary Fund. This does not mean we should take out loans via the IMF, since such an arrangement would only increase our credit rating, lower the price of indebtedness and improve the state of public finance, Škreb is convinced. Poland is a good example with a similar arrangement as a precaution, without drawing down the funds. An alternative solution to decreasing public debt, sometimes mentioned by certain economists, are national bonds, but Škreb is not inclined to them, since that would increase debt, while eventual public investment, generated this way, will not save the economy.
Cost of debt Croatia stands quite well according to the level of public debt, since it is still below 60% of GDP, while the Eurozone’s average is 90%. However, Škreb warns this is similar to comparing apples and oranges. We should compare ourselves with other EU members, and then we will see that public debt in Slovenia and Hungary is higher than that for Croatia. Bulgaria’s debt is below 20% of GDP and Romania’s is under 40%. Therefore, it is not strange that these two countries pay a significantly smaller cost for debt, even though Croatia was at the same level only three years ago. The cost of indebtedness reflects negatively on total public debt, and its increase is raising finance costs, which then leads to a reduced demand for loans. Banks profitability rate is in decline, and it is now almost three times lower than that of 2004. Active interest rates are stagnating, and they have almost halved since 2010. Škreb anticipates these trends will continue during 2014 since banks will try to maintain some level of profitability under the conditions of reduced loan demand through a higher difference in interest rates.
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Privredni vjesnik Year VI No 230
( €4.75 billion annual pension costs
( 50%
covered by contributions
AFTER REVEALING THE AMOUNT OF THE “EUROPEAN” DEFICIT, MINISTER LINIĆ WILL
Pensions will not cha is on the table
Based on the Brussels’ methodology, Croatian public debt stands at 55%, while the European average is 85%, and European countries is 90%. Therefore, Croatia has some room left to activate measures to prevent excessive deficit. active economic policy to boost the economy and start raising GDP, and this is the only right and possible solution t stabilisation in Croatia, opines Ljubo Jurčić Igor Vukić ccording to EU criteria, the state deficit for the past year is higher than the deficit based on the previous Croatian government methodology According to the Eurostat report published by the Central Bureau for Statistics, the state deficit is 5% of GDP for 2012. This is 1.5% above the Government report, based on the IMF methodology. Both results derive from the Maastricht Framework, according to which the state has to maintain a deficit below 3%. For this reason, the Excessive Deficit Procedure will be applied to Croatia. This is a procedure that requires the state to bring the deficit within the required framework within three years. The Croatian Government will propose concrete actions for such a reduction to the EU Council. Finance Minister, Slavko Linić, says the income and expenditure side of the budget will have to be amended. Concerning the income side, it is possible that the VAT rate will be increased, but did not want to comment on whether this means the rate will be increased to 27%, as in Hungary.
A
Increasing resistance to cuts He also reminded that the deficit in 2012 had been decreased
to 5% (European) from 7.8% in 2011. The newly announced cuts are facing increasing resistance, Linić highlighted. According to him, the pension system deficit is the biggest problem. Due to a lack of economic growth and weaker employment, the pension system is poorly filled from pension contributions. Therefore, the state has to transfer the pensions from the budget. Contributions cover only half of pension expenditure of €4.75 billion annually. At the same time, 80% of pensioners have below average pensions, so it is difficult to find room for cuts. Thus, last week Minister Linić repeated several times that pensions earned with
the service years will not be reduced. The Minister reminded the Government had already presented reforms that will be the basis of discussions with the European Union. Not even these reforms will bring immediate relief, and Croatia will have an additional expense of €0.6 billion due to obligations as a result of EU membership. The Government predicted a deficit of €1.97 billion for the forthcoming year; “this is a response to those who think we should monetise motorways or privatise state assets”, he said, questioning whether Croatian society is ready for such reforms. For example, €4 billion is
Deficit reached 7.8% in 2011 A 5% deficit is the result of European methodology where obligations are calculated in the year in which they were arranged, and not when they were paid. Furthermore, the calculation also includes obligations that have not been included to date, and they concern guarantees to the shipbuilding sector, health and debt recovery to pensioners. According to European rules, the deficit includes the amounts the state is subsidising railways and guarantees for its loans. The biggest differences between the two methods for calculating the deficit were evident in 2011. In that period, the deficit was 7.8% according to European rules, and 4.5% according to the IMF method. According to the deficit calculated based on the European rules, Croatia ranked seven in the European Union in 2012. Spain was first (10.9%), followed by Greece (9%). German finances are maintained more neatly, with a surplus of 0.1% of GDP, followed by Sweden and Estonia with 0.2%. However, unlike Germany, Sweden and Estonia have never been under the Excessive Budget Procedure. At the height of the deficit, Ireland, Cyprus, Portugal and Great Britain have had poorer results than Croatia.
due over the next few years in the road construction sector, and the refinancing of these obligations will bring high interest rates. The state budget will not be able to cope with this. “We are expecting a series of difficult moments and all options are possible”, Linić said. A more elegant solution would be 3% economic growth; however, regardless of the mild recovery in Croatia predicted by international economic institutions, such growth rates will be hard to achieve in a short period of time. One-off measures are no good Anto Bajo, from the Public Finances Institute, says a member country has to prove that the implemented reforms, aimed at decreasing the budget deficit, are long-term, and not one-off, like selling state assets or privatising state-owned companies. It is more than clear the Government has to implement measures disliked by the public on the expenditure side of the budget. This means at least two to four years of savings that would bring state finances to a sustainable level. Unfortunately for the Croatian public, this will be the price of reforms the previous governments did not implement, Bajo evaluates. Former HNB Governor, Marko Škreb, thinks the Government
www.privredni.hr Business & Finance Weekly
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( 5% of GDP
state deficit for 2012. (Eurostat report)
( 7.8% of GDP state deficit for 2011.
L CONTINUE WITH COST SAVINGS, AND AN INCREASE IN VAT RATE IS ALSO POSSIBLE
nge, everything else the debt of most developed The Government can use an o the deficit and financial should ask the International Monetary Fund for help. Škreb, currently Chief Economist with Privredna banka, says the IMF has stopped searching for rigid saving measures, but is applying a more flexible approach to public finances. The arrival of the IMF would enhance the reputation in financial markets and decrease the costs of any possible debt refinancing. The necessary reforms would be implemented more easily via the IMF since the politicians’ fear of election results in the end always makes them give way to interest groups, Škreb thinks.
The Government predicts in excess of €1.97 billion deficit for the forthcoming year Economist Ljubo Jurčić’s attitude differs from that of Linić, and criticises those who think the Minister did not cut enough. All future cuts would push Croatia into an even greater catastrophe, Jurčić suggests. “Cuts are what brought us here in the first place”. “In fact, tax increases reduced spending, production and the income side of the budget. The solution lies in promoting local production. The solution does not lie in the Ministry of Finances, but in the Ministry of
Economy”, Jurčić said. According to him, there is no need for panic since Croatia is not a heavily indebted country. The problem is the rate of debt increase Based on the Brussels’ methodology, Croatian public debt is 55%, while the European average indebtedness is 85%, and the debt of the most developed European countries is 90%. Therefore, Croatia has some room left for activating measures to prevent an excessive deficit. The Government can use an active economic policy to boost the economy and start raising GDP, and this is the only right and possible solution to the deficit and financial stabi-
lisation in Croatia, opined Jurčić. Economic analyst, Velimir Šonje, also points out the statistical fact that Croatia is in the middle according to the level of public debt of EU countries. But his interpretation is different. Some of our economists think the level of public debt is not a problem. However, the first problem is that in Croatia it is growing rapidly, whilst decreasing in Germany and Hungary. The second problem is that Croatian governments have issued substantial guarantees, most of which will mature. The debt will then automatically increase if there is no deficit (and there will one for a very long time). The third problem is that Croatian public debt is not the
same thing as German public debt. The interest Croatia pays is double that Germans pay, Šonje points out. He also adds that statistics are deceptive, but we are levelled by the dynamics. If we do not do something, we could find ourselves in the EU’s top 10 debtors. If that happens, we will pay interest rates far higher than anyone else in the top 10. Small and less developed EU countries do not belong to the same club as Germany, Belgium and Great Britain. They have a more space to manoeuvre as they have been dealing with a market economy for several centuries longer than Croatia, hence why there are many more wishing to finance them, Šonje concluded.
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Privredni vjesnik Year VI No 230
( some €150,000
invested in reconstruction of Kutina Hotel
UPGRADING CONTINENTAL TOURISM
Kutina and the aroma of quince Moslavina has been focusing heavily on boosting various types of tourism, such as sports, gastronomic and wine tourism as Kutina primarily attracts cycle-tourism along its marked cycle routes Sanja Plješa he upgrading of tourism in the continental part of Croatia has been a recurring topic of public speeches over the last several years. Diverse cultural programmes, rich cuisine, top quality wines, the proximity of the more important routes and Zagreb has been increasingly attracting tourists to Moslavina and primarily to Kutina, which tourists have only recently discovered. “It is a children-friendly city and a meeting point for young people. In addition, Kutina provides a wide cross-section of sporting events and its sports centres host a large number of state competitions and international qualifiers
T
Kutina is preparing a project “Kutina - the sports preparation city” for which it will apply for EU funding for Croatian teams”, pointed out Andrija Rudić, the mayor of Kutina. Moreover, Kutina and the entire area have been focusing on upgrading cycling and cycle tourism that is becoming increasingly popular in Croatia and throughout Europe. In Moslavina, there are a large number of marked and mapped cycle routes for enthusiasts and those wishing to tackle routes that are more challenging. In order to further develop this type of tourism, Kutina has been preparing a project “Kutina- the sports preparation city” for which it will apply for EU funding. The project will also include the reconstruction of the city swimming pool and develop
the sport programme in order to attract an increasing number of sports enthusiasts, as well as professional sportspeople and provide the venues and facilities for sports preparation. Golden quince culinary competition In addition to its attractive sports programmes, Kutina has become well-known for its gastronomic and wine delicacies with local wine varieties such as Škrlet, Dišeća ranina and Moslavac, which are an excellent in combination with local gastronomic specialities. The golden quince culinary competition has recently been held for the ninth consecutive year, organised by the Chef Association of Sisak-Moslavina County in the Kutina Hotel in order to further promote local gastronomic specialties. It was the first round of the Croatian Chef Cup competition for the 2013/2014 season. Chefs from throughout Croatia competed in preparing appetisers, main dishes
and desserts with quince as the principal concept. “The theme across the competition, as well as the propositions, were adapted to Kutina which has been traditionally associated with quince and in some parts of Croatia and Slovenia the word kutina is used to denote quince. “Quince is traditionally an ingredient of desserts in Moslavina region”, explained Marijan Bošnjak, President of the Chef Association of SisakMoslavina County. The winner of the Golden quince competition was a chef from the Zadar-based Falkensteiner Hotel Iadera. Savings due to heating renovation The Golden quince culinary competition has greatly influenced the Kutina Hotel over the last several years, according to its Director, Vesna Glavica Svoboda. “Our visitors are mainly transiting tourists arriving through Hungary and two years ago we started receiving an increasing number of visitors from
Slovenia and Italy. As a result, we decided to reconstruct the hotel entrance and significantly improved the insulation of its flat roof and refurbished the fourth floor which has not been used thus far” noted Vesna Glavica Svoboda. The value of the investment is some €150,000, yet the hotel has shown up to 60% savings on its heating costs primarily due to the reconstruction of its heating system. The hotel is a member of the Association of Small and Family-owned Hotels and Bed&Bike hotels. There are plans to boost the quality of hotel to further attract cycle tourism. “In addition to the Kutina Hotel, our family owns the Stari Hrastovi resort located near the Zagreb motorway and where we are currently reconstructing the roof with financial support provided by the Ministry of Tourism. We also own Villa Karolina in Sveti Fillip i Jakov which accommodates tourists during the summer”, emphasised Vesna Glavica Svoboda.