Economy Minister Radimir Cacic on Tuesday commented on the International Monetary Fund's forecast that Croatia's GDP would contract 1.1 per cent in 2012 by recalling his statement earlier this year that the government was doing its utmost to prevent some analysts' disastrous forecasts of a GDP decline of more than two per cent, adding that the IMF had confirmed what he had been saying.
Speaking to the press, Cacic said downsizing was necessary in public companies and that all analyses pointed to that, but added that there would be no lay-offs in the first stage.
After that, employees with 38 or 39 years of service will be able to retire early without being penalised too much, while the third stage will consist of a continuous performance evaluation which will eliminate those unsuccessful from public administration, giving a chance to young people and those more educated, said Cacic.
Asked about the privatisation of the shipyards, he said the government had adopted all decisions regarding Brodosplit and that contracts worth up to HRK 1.5 billion (approx. 202.7 million euros) now had to be signed. He said the government would cover the shipyard's debt, adding that Croatia would comply with its obligations and that the contracts would be signed in the shortest time possible.
Regarding Brodotrogir, Cacic said negotiations based on the government's decisions were under way and that the government expected this shipyard to be privatised by the end of the year.
The 3. Maj shipyard will be privatised on the model of Uljanik, with the possibility of the latter dock becoming an owner in 3. Maj, he said, adding that there were some other options as well.
