At its last session before a summer break next week, the Croatian government is expected to decide on inviting bids for the privatisation of the Croatia Osiguranje insurance company and the Hrvatska Postanska Banka postal bank, and to discuss draft amendments to the Fiscal Responsibility Act, sources at the Ministry of Finance said on Friday.
The government decided to sell its shares in HPB and CO earlier this month. On sale will be 99.13% of HPB and up to 50% of the government's 82.48% stake in CO.
After the privatisation of CO, the government plans recapitalisation of the company through a new share issue. Its objective is to retain the ownership of no more than 30% and no less than 25% plus one share in the largest domestic insurer.
The tender processes are expected to last until mid-September.
As for the amendment of the Fiscal Responsibility Act, if Parliament adopted the amendments in autumn, the government would already this year apply the new fiscal rule, which has been aligned with the European Union's economic policy management framework and which also concerns the obligation to adhere to medium-term budget goals.
