The government on Thursday launched a procedure for the appointment of a consultant on the privatisation and recapitalisation of the Croatia Osiguranje insurance company.
The government owns 82% of the company's equity and plans to sell up to 50% of its stake, Finance Minister Slavko Linic said at a government meeting. He added that with recapitalisation the insurer could strengthen its position in the life insurance segment, and that the government would use the sale proceeds to cover the budget deficit.
The government wants to keep 25% plus one share so that it can participate in decision making processes of strategic importance for the functioning of Croatia Osiguranje, Linic said.
The consultant would have to conduct market research, make an analysis of interested buyers and assess privatisation models which the Finance Ministry will propose to the government.
A similar decision was made a few weeks ago in connection with the privatisation of the Croatian Postal Bank HPB.
