 |
Croatia Struggles to Attract Needed Foreign Investment Capital
It is often hampered by red tape and slow privatisation
"The agency is the fruit of long work...but if investors encounter this kind of response in our companies, they will go elsewhere," a disappointed Economy Minister Davor Stern said at the presentation, poorly attended by local representatives. Although Croatia received over two billion German marks ($1.4 billion) in direct investments since its independence from Yugoslavia in 1991, the inflow of cash remains sluggish.
It is often hampered by red tape and slow privatisation of the country's industry. Meanwhile, the competition with other ex-communist states to draw in foreign capital is getting increasingly tougher. Five years of ethnic bloodshed in former Yugoslavia have scared away all but a handful of well-informed investors, unwary of the risk. But many may be flocking back after a peace accord was struck late in 1995 to snuff out the flame of war in the Balkans powder-keg.
Croatia puts renewed hopes in its relatively low inflation rate of about four percent per year and a stable currency, the kuna, to help draw in vital funds to prop up the industry. It banks on a favourable fiscal policy which imposes no capital gains tax and limits corporate profit taxes to 25 and 35 percent, without bias against foreigners. Stern said the newly set-up agency was one of a series of measures, including steps to form free trading zones, the government had taken to speed up the inflow of cash.
Foreign equity investment so far has been concentrated in the cement works, breweries, telecommunications and electrical industry. A number of joint ventures have also been formed in others sectors of economy. Government officials have indicated foreign investors would be particularly welcome in the shipbuilding industry, which requires sizeable funds to back new foreign orders and help it finance urgently needed and often costly restructuring plans.
Potentially high-yielding tourism projects on the scenic Adriatic coast could also attract some attention. |
ZAGREB, July 25 (Reuters) - Croatia inaugurated a new agency this week to promote badly needed foreign investment, but local entrepreneurs all but snubbed the opening ceremony and analysts said the country had to try much harder to woo foreign cash.
Croatia Welcome to Croatia
Croatia and Bosnia-Herzegovina Information Statistics, Maps, Archives
Croatian Companies A Business Directory
Croatia’s Islands Explore the Croatian Adriatic
Government of the Republic of Croatia Official Web Site
HRNET Networking the Croatian Community Worldwide
Republic of Croatia A Comprehensive Visit to Croatian Cities
Vladimir's Homepage Croatian and Macedonian interests
Berserkistan is a world news service of
Michael Linder Productions, Inc.
©1996-2014 All Rights Reserved