Ivan Kovač, General Director, Central Bureau of Statistics CBS is introducing the ultimate Intrastat Research to monitor merchandise
Dubrovnik remains the most expensive, Osijek cheapest Introducing a real estate tax may additionally contribute to a decrease in real estate prices
Weekend Media Festival Regional marketing specialists complain the financial crisis has changed the relationship with clients
INTERVIEW
REAL ESTATE PRICES
MEDIA
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Croatian Business & Finance Weekly Established in 1953 Monday / 4th October / 2010 Year III / No 0124 www.privredni.hr
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EXPORTERS AS PILLARS OF THE CROATIAN ECONOMY
IDEAS TO PROMOTE EXPORTS MORE THAN WELCOME In the first eight months, total exports increased by 13.4% and those to the EU have risen by 14.8% Igor Vukić here is no unique solution to promote exports, concluded the participants of the 9th HBOR Conference on Export Promotion, held last week. Whilst other European countries provided financial help for their banks in order to proceed with current economic activities, Croatian banks were stable and managed to assist the government in carrying out its duties. Borislav Škegro, Quaestus Fund Manager, noted that for Croatia,
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Since the beginning of the year the European Investment Bank (EIB) has invested €484 million in Croatian projects the movements on Italian and German markets were more important than all the measures undertaken, as these markets have been the most important Croatian export markets for over a century. After Italy and Germany had shown positive results, local exports also increased. Prime Minister Jadranka Kosor confirmed this with the latest statistical data: in the first six months, total exports rose
13.4% and those to the EU by 14.8%. Export Subsidies Exports are a significant part of the economy. Some 12% of export-oriented companies have achieved 65% of total enterprise income, including both goods and services, says PM Kosor. Therefore, the government will continue to encourage exports through annual subsidies worth €8.49 million. In fact, the particularly successful companies do not need subsidies, adds Škegro; however they do need an encouraging economic climate. Bringing in fresh capital is a priority, especially in terms of new investment, as all analyses show that even the most successful Croatian companies are sig-
nificantly undercapitalised. “You cannot have capitalists without capital”, opined Škegro, suggesting that for stronger development, Croatia needs at least 20 active risk capital funds. When compared with the previous year, seven Quaestus Fund investments have achieved a 17% increase in income which should encourage other investors. However, investor decisions are often influenced by non-economic impulses, cautions Škegro. Bank as Partner Persuading foreign investors to start a business is not an easy task, especially when considering that almost every large investment is confronted with professional protests “against capitalists”. The Croatian Bank
for Reconstruction and Development guarantees reliable partnership to those who, the current climate notwithstanding, still decide to both produce and export, notes Anton Kovačev, President of HBOR Management Board. With its wide range of services, including credit financing and export insurance, HBOR has a special position in the finance market. Matthias Kollatz-Ahnen, VicePresident of the European Investment Bank, confirmed that EIB will continue to monitor HBOR projects. EIB has already provided a substantial amount of favourable loans via HBOR. Since the beginning of 2010, the European Investment Bank (EIB) has invested €484 million into Croatian projects.
2 VIEWPOINT
Privredni vjesnik Year III No 0124
HEINZ JOACHIM SCHÖTTES, GERMANWINGS CORPORATE COMMUNICATIONS MANAGER
Croatia a fast-growing market
551 Loans Granted in Eight Months
€0.5 billion HBOR finance granted to exporters
Germanwings business in Croatia is extremely stable and produces impressive results. f the potential of the Croatian low cost airlines market is analysed by the example of Germanwings, it is easy to conclude that Croatia is indeed a fast-growing market. The company recognised this opportunity in 2004, being the first low cost airline company to fly to Zagreb and Split. Currently it offers flights from Zagreb, Split, Dubrovnik, Pula and Zadar to various European destinations, with its Smart Connect service connecting Croatia with 20 European cities. Germanwings business activities in Croatia are extremely stable and produce impressive results. By the end of 2010, some 440,000 passengers are expected to travel with this German airline, a 10% increase over the previous year. Average seat occupancy on flights from Croatia remains at the substantially high
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Germanwings management considering introducing additional flights to popular Croatian destinations level of 80%. With Croatia being one of the most popular Mediterranean destinations and extremely popular with clients, Germanwings and other low cost airlines play an important role for both further growth and the attraction of future tourists. Despite the overwhelming 90% of tourists travelling to Croatia by car, Germanwings management believes that the trend is about to change, as low cost airlines proIMPRESSUM: Privredni vjesnik Kačićeva 9 10000 Zagreb +385 1 5600020 uprava@privredni.hr www.privredni-vjesnik.hr/ subscription
In the first eight months, insurance covered exports valued at more than €0.23 billion Igor Vukić n the first eight months of this year, the Croatian Bank for Reconstruction and Development granted 551 loans to Croatian exporters worth €0.5 billion. Total loans in this period amounted to €0.71 billion, 70% of which were intended for exports. The overall number of loans granted to entrepreneurs, including exports amounted to 1,230. “Since its establishment, HBOR, being both a development and an export bank, as well as the Croatian export agency, has supported Croatian entrepreneurs in their efforts to strengthen their position on the international market”, stated Anton Kovačev, President of HBOR Management Board. The overall value of exports in the first eight months 2010 totalled more than €0.23 billion, an increase of 9% compared with the same period last year. Export Insurance “Considering that export deals demand a wide knowledge in many different fields, especially finance, in order to provide both a complete service and optimum solutions, HBOR experts continually track the latest world trends”, added Kovačev. An example of permanent im-
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vide the necessary comfort and are cost effective. The positive influence of low cost airlines for Croatian tourism potential is inevitable, since they provide easy and affordable travel packages to destinations such as Dubrovnik, Split, Pula and Zadar. According to Germanwings data, in addition to tourists and travellers visiting families and friends, their main target group is business travellers who currently comprise 42% of total passenger numbers. The current economic crisis has certainly contributed to an increasing trend of business travellers flying with low cost airlines. This year’s increasing number of tourists to Croatia, when compared with 2009, is undoubtedly a positive sign, as well as comfirmation for maintaing a substantial number of flights to Croatia. Company management is also considering the introducing of additional flights to popular Croatian destinations, hoping it will encourage new low cost airlines to enter the Croatian market.
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
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EXECUTIVE EDITORS Andrea Marić maric@privredni.hr Vesna Antonić antonic@privredni.hr
COUNSELLOR, INTERNATIONAL OPERATIONS, LANGUAGE EDITOR Ray Fletcher fletcher@privredni.hr
provement is the establishment of the Croatian Credit Insurance (HKO), with the aim of providing quality export insurance covering all political and business risks. The Croatian Credit Insurance, founded in co-operation with Austrian partners, will deal primarily with export insurance. However in the future the company plans to expand business into the area of local accounts receivable. The company will become the first to specialise in this kind
Exports comprise 70% of HBOR total credit financing of €0.71 billion in the first eight months of 2010 of risk insurance in Croatia. The HKO plans to enter the export loan insurance market before Croatia joins the EU, as accession implies that short-term export receivables insurance must be conceded to the market. From 1998 to date, the Croatian government has transferred jurisdiction in terms of export receivables insurance to HBOR. “Many Croatian exporters have recognised and used all HBOR benefits, and, we invite others to test our services which are tailored to their needs “, added Kovačev.
Programmes for Entrepreneurs Since 1997, the Croatian Bank for Reconstruction and Development has created a support system including five financing programmes intended exclusively for exporters. In addition, HBOR issues export bank guarantees and provides supplier credit insurance, credit insurance for export preparation and foreign investment insurance.
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(CBS Projects Financed by €13.5 million of EU funds
INTERVIEW: IVAN KOVAČ, GENERAL DIRECTOR, CENTRAL BUREAU OF STATISTICS (CBS)
STATISTICS MUST COINCIDE WITH SOCIAL CHANGE
CBS is introducing the ultimate Intrastat Research to monitor merchandise between Croatia and EU members Drago Živković
In your opinion, would you describe the CBS public image and its business activities as successful? The Central Bureau of Statistics has been collecting data according to a certain methodology, and it primarily provides a summary of the respective method, by stressing its most important issues and putting them within a specific context. In the same way, we use a language understandable to the general public, not just to statisticians. In order to avoid both misinterpretations and misuse of our data, we continually track media announcements about CBS statistics so that we can react appropriately and in a timely manner.
fficial statistics, despite often being used in public communication, are not always appropriately interpreted. Rarely is it discussed where the data actually come from and what their overall number is. These and other issues were discussed in with Ivan Kovač, the Central Bureau of Statistics (CBS) General Manager.
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To what extent do the CBS statistics standards correspond with EU regulations? Croatian official statistics has significantly been harmonised with EU legislation, which was temporarily closed in October 2009. The Central Bureau of Statistics has improved most of its existing research systems and introduced many new ones. The most important improvements have been made in the National Accounts Statistics as a source of major macroeconomic indicators, as well as in the Agricultural Statistics. Both were indicated as prerequisites for the temporary closure of Chapter 18. In addition, we have continuously developed all other statistical areas. Despite the temporary closure of chapter 18, the adjustment to EU legislation has still not been entirely completed. How is the Statistics Development Strategy being implemented? Regarding the Economic Statistics, the CBS completed, at the beginning of 2009, a huge statistical revision of annual GDP rate for the period 1995 to 2005, which included new and improved data sources. In addition, a revision of a series of 3-month
Co-operation with Eurostat and EU Funding
Croatian official statistics significantly harmonised with EU legislation GDP rates has been conducted. Furthermore, at the beginning of March 2010, we aligned regional GDP data for second-level geographic units and counties between 2000 and 2006 with new data sources and accounting methods. Currently, the Central Bureau of Statistics is preparing 23 co-ordinated short-term business indicators but lacks seven additional ones, most of which relate to prices. They are expected to be published by March 2011 at the latest. Regarding Energy statistics, the CBS has completed the full harmonisation with EU regulations. In addition, as the
CBS participates in the Eurostat development projects, a representative survey on household energy consumption, financed by 2009 Ipa funds, is expected to be prepared in 2011 and implemented in 2012. Moreover, the CBS is working intensively on the introduction of the ultimate Intrastat Research which will monitor merchandise between Croatia and EU members. Regarding the strategic goals related to statistic registers, it is significant that, due to pre-accession funds, the majority of activities have already been completed. Furthermore, it should be stressed that most of the strategic goals in the area of agro monetary-, crop production-, livestock farming-, fishery- and forestry statistics have also been achieved. In the same way, we are improving our gender statistics.
Is the CBS involved in certain EU funded projects? In 2000, The Central Bureau of Statistics and Eurostat established open and extremely active co-operation, the first joint project being the population census for 2001 as a part of the Renovation Programme. It should be mentioned that CBS participates in various additional multi-user programmes. So far, we have successfully completed 20 different development projects with either full or partial EU funding. A further six projects, relating to 30 additional statistical sectors, are already in progress, and their overall value amounts to some €5.7 million. The CBS has also applied for further EU funds relating to five new projects for 18 additional statistical sectors.
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Privredni vjesnik Year III No 0124
REAL ESTATE PRICES
Vetropack connects Croatia and Slovenia Vetropack Straža, located in Hum on the river Sutla, has built a bridge connecting its plant on the Croatian bank with their warehouse on the Slovenian side. This project has solved the chronic issue of a lack of adequate warehousing space, and it obtained all necessary permits in both countries. At the opening ceremony, the company celebrated its 150th anniversary. Personal Debt Decreasing The number of individuals taking loan facilities has decreased from 27.7% to 25.7%, reported GfK. In addition, the number of people with current account overdrafts has decreased by 1.5%. However, the majority of them continue doing business with banks in a traditional way. 75% of bank clients are loyal to one bank only, whilst 20% deal with two banks, and 6% of them deal with three or more. Generally, Croats use approximately 3 to 4 different bank services, usually current account and related products. Ericsson NT Signs New Export Deal
Dubrovnik remains the most expensive, Osijek cheapest Introducing a real estate tax may additionally contribute to a decrease in real estate prices t the beginning of September, apartment prices in the majority of Croatian cities remained at approximately the same level as August. The change in price in all cities remained below 1 %.
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Ericsson Nikola Tesla has signed new export deals worth €5.48 million. The majority of these relate to the Russian market and neighbouring countries and cover the modernisation and upgrading of mobile and fixed networks, as well as IP-oriented solutions for corporate customers. The agreements were signed with mobile and fixed operators and business customers, ENT’s long-standing customers and business partners Ina and Lukoil Close Sale of Crobenz On September 30, Ina closed the sale of Crobenz to Lukoil Company. Lukoil gained Crobenz wholesale and retail trade at 14 filling stations. The transaction was both initiated and approved by the Croatian Competition Agency.
Crozilla.com experts do not expect an increase in apartment prices by the end of the year A successful tourist season reflected in the real estate sector, thus, according to Crozilla.com, only some coastal cities apparently recorded an increase. In Rijeka, for example, the increase in price, when compared with August, totalled 0.08%, or €1, the average apartment price per square metre in September standing at €1,708. Zadar, on the other hand, recorded an increase by 0.2%, or € 3, the price per square metre amounting to €1,645. In Pula, real estate prices increased
by 1% (€14), an average apartment price per square metre in September increasing to €1,400. In Zagreb, prices decreased by 0.6%, or €11, an average apartment price per square metre in September being €1,837. According to Crozilla.com, in September, an average apartment price per square metre in Split was €2,138, showing a decrease of 1% (€22) compared with August. Dubrovnik recorded a symbolic decrease of 0.4% (€13), an average price per square metre being €3,345. In Osijek, an average price per square metre was €963, a decrease of 0.1% (€1) compared with August, which makes it the cheapest city on the Croatian real estate market. Large Number of Unsold Apartments Due to a number of economic indicators, Crozilla.com experts do not expect an increase in apartment prices by the end of the year. Increasingly lower interest
for real estate purchase, caused by the current financial crisis, has resulted in a decrease in prices, especially when compared with the previous year. Compared with the first nine months of 2009, real estate prices decreased by 6%, whereas when compared with 2008, prices decreased by 10%, according to data from Crozilla.com. In addition, data from the Central Bureau of Statistics show increasingly lower volumes of construction work, implying that the demand for new apartments has decreased. Another reason for such an outcome is the large number of unsold apartments. This leads to the conclusion that real estate prices are not expected to grow significantly by the end of the year.The planned introduction of a real estate tax may additionally contribute to a decrease in prices, considering that the majority of owners will most certainly decide to sell their unused property in order to avoid the tax, believe Crozilla.com experts. (V.A.)
www.privredni.hr Business & Finance Weekly
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WEEKEND MEDIA FESTIVAL
Consumers becoming bolder
Regional marketing specialists complain the financial crisis has changed the relationship with clients by increasing their expectations and demanding more for less Drago Živković mong the plethora of conferences repeatedly gathering the same media, marketing and communications representatives, the Weekend Media Festival stands out by attracting a vast number of attendees. Under the sponsorship of the Adris Group which provided spacious facilities in the old Rovinj Tobacco Factory, located in the centre of the town, the Weekend Media Festival managed to gather 2,500 attendees, of whom 400 were journalists, and more than 110 panellists and lecturers. This leaves us to consider whether the festival has reached its maximum this year or not and if the introduced innovations have already become out-dated. There were few complaints related to the financial crisis. However, the regional marketing specialists pointed out that the financial crisis has changed the relationship towards clients, who increasingly demand more for less. Ivan Stanković, representative of the Belgrade agency Communis, noted that consumers have increased their demands as they have specific, higher expectations in exchange for what they will pay. Thus far, client-brand relationships have resembled an old married couple. Now, it encompasses the wider family, as partnership with the media is also demanded, as Ivan Stanković graphically explained the relationship.
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Thus, agencies are currently experiencing a difficult situation. Their clients are forced to fight for each consumer as well as carefully plan future costs. The ‘big players’ in the communications market, such as T-Com, have achieved significant success with new services like ADSL and IPTV, as more people prefer to stay at home rather than go out. Maintaining Customer Loyalty Macedonia struggles with the same challenges, says T-group marketing manager, Dimitri Kovačevski. He feared the worst possible scenario during the financial crisis –price based competition which could cause
So far, client-brand relationship resembled an old married couple. Now, it encompasses the wider family, as partnership with the media is demanded the entire market to crumble. Žana Goić, Ina representative, believes that the oil industry has not been significantly affected by the crisis, especially in basic product sales, as price differences amongst the competition are almost insignificant. However, the crisis did have a substantial impact on the sales of additional products at petrol
stations. Hence, competitiveness is achieved through promotions. For Ina, a reduction in the marketing budget means an increase in demands towards its agency business partners. The basic food product market has not shown any significant decrease in sales; however consumers have transferred their attention from high-cost brands to the low-cost, says Nataša Pucar, representative of Bosnian Studen Group. Thus, during times of crisis, maintaining customer loyalty becomes an even more important issue. Ivo Laurenčić, from the IDEA Plus Agency, says that the largest Macedonian winery Tikveš, has managed to maintain customer loyalty by repacking branded wines into new, lighter and cheaper packaging, as well as introducing new wine brands, intended for a younger population representing a completely new consumer category. Internet no longer what it was Perhaps as a result of the crisis, the Internet in its current format is no longer economically sustainable, claims American entrepreneur Andrew Keen, author of “The Cult of the Amateurs”. In his words, Keen himself has so far failed a number of times as an Internet entrepreneur. However, in California, where he currently lives, nobody seems to resent this. In fact, he is even considered somewhat of a celebrity.
The first phase of Internet development, according to Keen, was Web 1.0, referring to the time when it served merely as a digital content distribution channel. Considering that, at the time, it lacked an appropriate focus, existing authorities were brought into question. According to Keen, this fact makes Internet not only a technology, but also an ideology, as its creators wanted both to earn money and change the world. In its second phase, called Web 2.0, the Internet nourished a growing culture of narcissism, thus creating a ‘common cacophony of content’, an anonymous oligarchy and a culture of mediocrity. As a business model, Web 2.0 is completely unsustainable, as proved by the example of YouTube, which still shows a loss despite an enormous number of visitors. Therefore, Web 2.0 is dead. Its ruins have become the basis for social networks, which, in Keen’s opinion, are a positive consequence. However, Keen warns about the danger of invading personal privacy and jeopardising national identities through globalisation. With everything being transferred to the network, what is left of real life, wonders Keen, predicting that, unlike Web 2.0, social networks will survive. However, their growth has changed the Internet to such an extent that even words have lost their vital meaning, the reason why Keen suggests finding a new name.
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Privredni vjesnik Year III No 0124
CROATIAN FOREIGN CURRENCY MARKET Currency
AUD CAD JPY CHF GBP USD EUR Source: HNB
EUR
Kuna exchange mid-rate
7.31
5,163909 5,169761 6,381523 5,426904 8,416958 5,311589 7,299186
EIB supports Croatia with €200 million The European Investment Bank (EIB) is providing a €200 million loan to Croatia to co-finance Croatian EU Pre-Accession activities, in co-operation with the European Commission. The EIB funds will help implement investment totalling some €800 million that will address the long-term needs of the Croatian economy and are expected to assist Croatia in meeting EU standards in a number of key sectors. The programme includes priority investments in improving water supplies, solid waste management (landfill at Bikarac), railway infrastructure (Vinkovci-Tovarnikland border crossing railway), regional competitiveness and human resource development. Velebit increases capital Insurance company Velebit Osiguranje increased its share capital to €10.55 million, divided into 770,000 registered shares with a nominal value of €13.70 per share. The increase was conducted according to a decision by the company management and under the terms laid out in the Company Statute. The share capital increase was officially registered last week. Erste recommends buying Ina shares Erste Bank analysts recommend buying Ina shares, as their value is predicted to increase to €301.37 over the next 12 months. They consider that in the past 12 months, due to a low level of liquidity and slow macroeconomic recovery in the region, Ina was falling behind other oil and gas-related companies. However, Ina’s economic prospects are very encouraging. Refinery modernisation, a hydrocarbon production increase and cost-cutting measures present the main factors in raising profitability.
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CROATIAN NATIONAL BANK
Gross Foreign Debt standing at €43.6 billion In the past six months, Croatian gross foreign debt reached €508 million, an increase of 1.2%, primarily due to increasing foreign liabilities within the banking sector he latest data from the Croatian National Bank show that, at the end of June, total gross foreign debt amounted to €44.9 billion, an
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Foreign debt structure slightly changed: banking sector share in overall debt again exceeded 25% increase of 8.9%, when compared with the same period last year. Stripping out ‘roundtripping’ which considerably
increased the figure, total gross foreign debt at the end of June stood at €43.6 billion. In the past six months, Croatian gross foreign debt has grown by €508 million, an increase of 1.2%, primarily due to increased foreign liabilities within the banking sector of €57.67 million, or 3.9 %. Other sectors, including companies and financial institutions other than banks as well as the Croatian Bank for Reconstruction and Development (HBOR), have also added to total foreign debt by an additional €35.48 million, or 0.9%. A decrease in both the total amount borrowed and direct in-
vestment resulted in a reduction in total foreign indebtedness. In the first six months, Croatian foreign debt decreased by €143 million (2.8%), with direct investment falling by €166 million (2.2%). When compared with end December 2009, at the end of June, the foreign debt structure changed slightly. The banking sector share of overall debt again exceeded 25%, mainly due to a decrease in the state share from 17.1% to 16.6%, and a decrease in direct investment from 12% to 11.5%. The share of other sectors in overall debt fell from 49.6% to 49.4%. (V.A.)
www.privredni.hr Business & Finance Weekly
WE PRESENT
EXERCITIUM CONSULTING, ZAGREB
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VINSKAPRICA.COM
Wine Making as a Profitable Business The web portal aims to provide winemakers, vine growers and other wine and gastronomy enthusiasts with full and independent data of the market situation
Practice Makes Perfect Exercitium Consulting is the only company in Croatia with DISC Trainer Certification xercitium Consulting from Zagreb provides expert counselling services to companies in the field of employee key competence development. Guided by the motto “Practice Makes Perfect“, the company provides quality practical education to its trainees, including a theoretical framework, industry-specific skills development and encouraging a positive attitude. Zvjezdan Čorbić, Exercitium Consulting Senior Manager, points out that the current training situation in Croatia is not as bright as expected. “According to the latest data, only 2% of the adult population has undergone some form of additional training (compared with 9% in the EU). This statistic confirms we are far from the desired image of ‘the Land of Knowledge’, although it might present huge potential for improvement. The consulting services market is a story on its own – there are no clearly defined competence or qualification criteria for the job (except for some formal educational levels). The market is teeming with hundreds of one-day ‘seminars’ of often dubious quality. It seems that in practice, acquaintances have advantage over knowledge, hence
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the majority of both employers and employees have no interest in regulating this important segment of adult education. It is to the responsibility of the free market to offer opportunities, which makes it difficult for users to recognise the quality ones based on practice, experience and science”, explains Čorbić. DISC as Standard Exercitium Consulting is the only company in Croatia with the personality based DISC Trainer Certification, created by the German company, Persolog. DISC is included among the most highly accepted applied business psychology concepts globally, as it presents the complexity of human behaviour in a simple manner. There are four basic personality groups – Dominant, Influencing, Steady and Cautious, which is abbreviated to DISC, thus making it easier to remember. It is highly motivating and easily applicable in everyday practice. So far, it has been used by more than 40 million people globally. Hence, most Exercitium training uses this programme. It has proved to be an outstanding tool for developing management competence, both in sales and human resources. (B.O.)
he web portal vinskaprica. com (winestory.com) was set up last summer, by three wine enthusiasts - Željko Bročilović Carlos, Darko Baretić and Zoran Vodopija. With slogans like “For those who perceive wine as more than just a drink“ and “We do not own vineyards or produce wine but create the wine scene“, they aim to provide winemakers, vine growers and other wine and gastronomy enthusiasts with full and independent data on both the market situation and wine quality, in one place. Željko Bročilović Carlos, sommelier, wine selector and wine connoisseur proposed the basic idea for the creation of the web site which was developed in co-operation with his two colleagues. The web page was created in August, and during the first month the portal recorded 6,324 visitors, some 220 visitors daily. “The figures have been increasing and reached a maximum of 850 daily visitors in September, when we released an article entitled Complete Results of Croatian Wine Evaluation, originally published on eRobert Parker.com. Readers obviously found it interesting due to the fact that Croatian wines were highly rated on that web page“, says Željko Bročilović Carlos. It
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is interesting that vinskaprica.com has also recorded a substantial number of foreign visitors, hence their inclusion of an option for automatic text translation. Local Wines Increase Quality On a global scale, wine making is a huge business and includes a number of ancillary industries, as well as social classes. Extensive international discussions on wine generally popularise wine culture, thus increasing general interest in wine roads, according to Bročilović. He adds that the Croatian wine situation permanently changes with further innovations expected when Croatia joins the EU. “The quality of local wines is increasing. However, foreign wines are still more pricecompetitive. Due to contradictory critical opinions, consumers, winemakers as well as gastronomy and wine professionals often lack quality data. Therefore, our aim is to provide at least one aspect of this information“, Carlos points out. In addition to his activities on vinskaprica.com, Carlos is currently preparing the fourth Zagreb Wine Gourmet Festival, which is to be held on February 25 and 26, 2011, in the Zagreb Museum of Modern Art. (S.P.)
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Privredni vjesnik Year II No 0124
26th International Nautical Fair hosted by Rijeka
New Tehnobeton Factory in Kosovo Recently, the Zagorje-Tehnobeton construction company opened a new factory for manufacturing centrifugal reinforced concrete columns in Mitrovica, Kosovo. The construction work of the factory, worth €5.18 million, was started in association with the Burimi Company from Kosovo in the summer of 2009. Badel solves blockage problem Badel1862 and Atlantic Group announced that they have completed the sale of Kalničke Vode Bio Natura. Atlantic took over the company worth €11.23 million. In addition, Badel management announced that, simultaneously with the sale process, they have re-negotiated their long-term debt settlement. Last week, Badel was able to reactivate its account as a result of the agreement reached with the banks.
NAUTICA PROMOTED FOUR PREMIERES
Total Swiss Franc Loans Amount to 24 %
Barbara Marjanović
The Pičuljan, ABC Plovila, Arba Nautika and Gata Port companies presented their new patrol, luxury and fishing boats he 26th International Nautical Fair, hosted by Rijeka from 22 to 26 September 2010, is the oldest venue of its kind in Croatia. The Fair welcomed 120 local and foreign exhibitors who presented the same number of vessels. Nautica 2010 presented all types of vessels, including motor boats, inflatable boats, sailboats and yachts, catamarans, wooden boats, inboard and outboard motors, as well as additional equip-
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To the middle of this year, the share of loans in Swiss francs in the overall Croatian credit financing totalled 24%, according to Croatian National Bank (HNB) data. The Swiss franc has appreciated sharply against the Croatian kuna, which has consequently increased the total share of loans made in Swiss francs. At the end of 2009, total CHF loans amounted to 23.1%. At the end of June, gross personal lending stood at €17.30 billion, of which CHF loans amounted to €4.12 billion. Zagreb host to 8th International Fair of Innovations Recently, Zagreb hosted the 8th International fair of innovations Arca 2010 and the first “Innovations Leading to Competitiveness” International Conference. Tihana Kraljić, State Secretary at the Ministry of Economy, stated the Ministry had been engaged in the implementation of a project intended for innovation promotion since 2004. To date, €4.11 million have been assigned for Croatian innovators’ exhibiting at international fairs.
A special attraction at the Fair were the traditional Croatian Littoral boats - batana, pasara, leut, lovranski and kvarnerski guc ment related to nautical and ancillary industries. This year’s Nautica offered four premieres: the Rab 830 patrol and work boat (Pičuljan), Murterino 28 Fishing and Murterino Luxury Open (ABC Plovila), Arba 500 fishing version (Arba Nautika) and Naval 19 (Gata Port). In addition, further innovations were presented, for example Bura Diving Mares (Hermes Nautica), Šibenik 80 work boat version (Dunkić), Gull 740GR (Galeb i Ja), Barra-
cuda 470 Diving (Barracuda brodovi), Fisher 20 (Intergrupa), M Sport 500 with or without a cabin (Mlaka šport) and Murterino 17 (ABC plovila). Modifications to the Excise Policy “The Fair is primarily a place where vendors meet buyers. However, Nautica has always been more than that, as it has traditionally been accompanied by other complementary events. I realise that, in these difficult times, when the general sales of vessels have decreased, it is not easy to organise a fair of this kind nor to appear at it. However, it is both important to maintain the tradition, and continue being present on the market, as this is the only way to survive, especially for small manufacturers. Considering that both tourism and maritime affairs are in the focus of the Croatian economy, we expect a lot from small manufacturers’’, said Vojko Obersnel, mayor of Rijeka, at the opening. “This is the reason why we need this Fair in the first place”, said Obersnel, pointing out that the information on the necessary modifications to the excise policy which present great difficulties for the small shipbuilding industry, have reached the intended addressees. “This year, local manufacturers at the fair exhibited the prototypes of boats, including both
sport (recreation) and business (transportation and fishing) boats”, emphasised Ivan Vanja Frančišković, one of the organisers, adding that the Fair’s primary role has never been to present mega-yachts, but to promote local boat production. Boats In Service of the Economy For years, the Maritime and Historical Museum of the Croatian Littoral, and the Natural History Museum, both situated in Rijeka, have organised exhibitions of an educational character, which have, together with the Exhibition of Innovations in Nautical Tourism and Maritime Affairs, been an integral part of Nautica. This year, the exhibitions presented the boat models manufactured by Brodogradilište Kraljevica, as well as the Unimer Old-timer Club display of old boat motors. A special attraction at the Fair included the Croatian Littoral traditional boats - batana, pasara, leut, lovranski and kvarnerski guc. These boats cast off for a promotional sail, which was followed by a Traditional Boat Regatta. At the 15th Exhibition of Innovations in Nautical Tourism and Maritime Affairs, 39 Croatian innovators presented 45 works, the most successful being awarded the traditional Golden Sail Award.