Croatia has prepared restructuring and privatisation models for its Brodosplit and Brodotrogir shipyards and the model for the 3. Maj shipyard is in the final stage of negotiation with the Commission.

"We are working to ensure that the contracts are finalised and signed in February or March," Pusic told members of Parliament during Question Time.

Economy Minister Ivan Vrdoljak said on Monday after meeting with the European Commissioner for Competition, Joaquin Almunia, that the contract for the privatisation of Brodosplit was agreed with the European Commission and was expected to be signed at the end of February.

Vrdoljak informed Almunia about the situation with the privatisation of Brodotrogir and 3. Maj, saying that the contract for Brodotrogir had been initialled and could be ready for signature soon, while a new restructuring programme for 3. Maj had been submitted to the Commission for consideration and it would take a few months to agree the wording of the privatisation contract. He said that the Commission's opinion on the programme was expected very soon.

"The Commission Vice-President and Commissioner for Competition, who is responsible for shipbuilding, shook hands with Minister Vrdoljak on that agreement and that deal is closed," Pusic said.

She said that the Ministry of Finance had taken up the task of building border crossing booths at Neum, which was one of the requirements set out in the Commission's monitoring report, adding that the work would be completed by March 31 as planned.

Pusic said she expected the process of ratification of Croatia's EU accession treaty in the remaining five countries (Germany, Denmark, Belgium, the Netherlands and Slovenia) to be completed in time.

She said that Croatia had put forward five proposals regarding resolution of the Ljubljanska Banka issue, noting that "we have a realistically good chance to settle this issue relatively quickly."