ZAGREB, 12 January, 2022 - Contracts worth a total of HRK 215 million have been agreed to date for the reconstruction of the earthquake-struck Banovina region, a tender worth HRK 380 million is being prepared and a further HRK 250 million will have been agreed by the end of January, which is HRK 800 million altogether.

This data was presented at a regular meeting in Petrinja of the task force dealing with the aftermath of the 2020 earthquakes in the Banovina area.

The meeting was informed of the reconstruction process and a public call for the use of €319.2 million from the EU Solidarity Fund, the task force said in a press release.

Significant progress on non-structural renovation

Significant progress has been made in non-structural works on buildings and so far works have been agreed for 4,840 houses, of which 1,151 family homes have been renovated and 6,600 people have returned there.

Works are underway on 851 family homes while 608 are being renovated by their owners with government funding.

A new tender has been advertised for the reconstruction of an additional 1,200 houses, which will mean more than 6,000 altogether of the 8,193 applications received.

The task force announced that it will be signing agreements next week for the construction of the first 30 houses and by the end of January agreements for a further 90 will be signed while a new tender will also have been advertised by then for an additional 150 houses.

Another two tenders will soon be advertised for the construction of four apartment buildings in Petrinja and two in Glina in addition to the tender that was advertised on 29 December for the construction of four apartment buildings in Petrinja.

The task force informed mayors in earthquake-struck areas and representatives of state institutions of a public call for funding from the EU Solidarity Fund for the reconstruction of public buildings, mostly those concerning cultural heritage as well as energy and transport infrastructure.

A call was also issued for grants for the preparation of technical documentation related to the digital and green transformation.

ZAGREB, 12 January, 2022 - The World Bank on Tuesday slightly revised down growth prospects for the Croatian and global economy in 2022, citing the uncertain environment of continued disruptions related to the COVID-19 pandemic and rising inflation.

The World Bank now projects Croatian growth for 2022 at 5.4%, compared with 6.0% forecast last October. On the other hand, the growth projection for 2021 has been revised upward from 7.6% to 9.4%.

The Croatian economy is expected to grow by 4.4% in 2023, which is 0.2 percentage points higher than the October forecast.

Among countries in the Europe and Central Asia (ECA) region, this year Bulgaria is expected to see growth of 3.8%, Romania of 4.3%, Poland of 4.7% and Hungary of 5.0%. The projected growth of this region for 2021 is 5.8% on the back of a stronger than expected recovery. The latest data suggest that the new wave of the pandemic will cause disruptions due to tougher mobility restrictions.  

The World Bank predicts that the growth of the ECA region will slow to 3.0% in 2022 as stricter macroeconomic measures and new waves of the pandemic subdue demand, noting that countries with low vaccination rates are particularly at risk. Growth is expected to continue to slow in 2023, to 2.9%, due to the continued withdrawal of fiscal support.

Following a strong rebound in 2021, the global economy is entering a phase of exceptional uncertainty because of new variants of the SARS-CoV-2 virus, which causes COVID-19, and growing inflation, debt and inequality in income, which might jeopardise the recovery of emerging and developing economies.

The World Bank estimates that global growth will decelerate from 5.5% in 2021 to 4.1% in 2022 and 3.2% in 2023 as pent-up demand dissipates and government and central banks continue to reduce their fiscal and monetary stimuli.

"The world economy is simultaneously facing COVID-19, inflation, and policy uncertainty, with government spending and monetary policies in uncharted territory," said World Bank Group President David Malpass. "Putting more countries on a favorable growth path requires concerted international action and a comprehensive set of national policy responses."

ZAGREB, 11 January, 2022 - It's imperative to mend relations with Croats and Croatia because the current tension is harming both peoples and countries but Croats in Bosnia and Herzegovina hold more management positions than guaranteed by the constitution, the head of the SDA party, Bakir Izetbegović, said in Mostar on Tuesday.

The leader of the Party of Democratic Action (SDA), the biggest Bosniak party in Bosnia and Herzegovina, spoke with the party leadership in Herzegovina after meeting with Croatia's Prime Minister Andrej Plenković in Dubrovnik on Monday, when they discussed the situation in BiH and the election reform in that country as well as preparations for a joint meeting of the two governments.

The current situation in relations between Croats and Bosniaks and Croatia and BiH is unnatural, said Izetbegović after meeting with SDA officials in Herzegovina.

"I will do everything for this unnatural state, where we have once again spoiled relations with Croats, we with Croats or Croatia with us, or we with Croatia, for that situation to be mended because it is very damaging for BiH as well as for Croatia," underscored Izetbegović, who is the Deputy Speaker of the House of Peoples, the upper chamber of Bosnia and Herzegovina's parliament.

Election law

Prime Minister Plenković is a "very good collocutor", said Izetbegović and warned that Croatian President Zoran Milanović inappropriately calls Bosniaks "abusers of Croats in BiH".

The talks in Dubrovnik focused on the need for election reform to relieve the tension between the two peoples seeing that Croats in BiH are constantly warning of being outvoted by the more numerous Bosniak people when electing the Croat member of the BiH Presidency and deputies to the House of Peoples.

Izetbegović believes that Croats in BiH are unhappy about one office, that of the Croat member of the BiH Presidency, underscoring that given their number, they are overrepresented in state institutions.

Croats in BiH are in at least a hundred leading positions in ministries, directorates, management boards and they hold more posts than the Constitution guarantees to them so allegations about their being threatened are not true, he said.

These things have not been presented and leaders in Croatia should be aware of that, he said.

Izetbegović advocates that the electoral reform to guarantee Croats the possibility of electing their legitimate political representatives should at the same time redefine the role of the House of Peoples which in that case would cease to be an equal parliamentary chamber and would decide only on matters that are of vital national interest.

Izetbegović is not optimistic that an agreement will be reached on the electoral reform over the next month as claimed by HDZ BiH leader Dragan Čović, who has announced that talks will be stepped up next week already with the mediation of the USA and EU.

Energy

Izetbegović said that during the talks with Plenković they agreed that it was necessary to react to the construction of the Upper Horizons energy project that authorities in the Republika Srpska entity are planning in eastern Herzegovina to redirect some tributaries of the Neretva River, which flows through Herzegovina and southern Croatia, to the Trebišnjica River.

"That would turn that part of Herzegovina into a desert," Izetbegović said.

Sanctions against Milorad Dodik

Asked about the sanctions against the Serb member of the country's presidency, Milorad Dodik, Izetbegović said that his conduct required resolute and efficient sanctions.

Izetbegović said that he also expected some European countries to introduce sanctions against Dodik, like Germany, the Netherlands, Italy and some Scandinavian countries, thus following the example of the USA.

ZAGREB, 11 January, 2022 - Croatian National Bank (HNB) Governor Boris Vujčić said in an interview with the HTV public broadcaster on Tuesday evening that he had not used inside information for personal gain and that he discussed the allegations with the prime minister.

Vujčić also said that he did not have information that other HNB employees did it either, calling on anyone with evidence of such activity to report it to the HNB and the Croatian Financial Services Supervisory Agency (HANFA).

The Index news website said on Monday that about 40 HNB staff, including HNB Governor Vujčić, had traded in bonds and shares of banks which are subject to oversight by the central bank, which has access to their confidential information.

"As far as I'm concerned, I sold the stocks of two banks that I had in 2001, after I became HNB vice governor and the HNB management at the time initiated legislative changes to forbid themselves to own bank stocks and trade in them, because at the time, it was allowed. If anything, one should commend such a move instead of attacking it. I could not have even imagined that in 20 years' time someone will interpret it that way," Vujčić told HTV.

"As regards other employees, if anyone has any information on insider trading, I am asking them to report it to the HNB and HANFA to check it," Vujčić said, adding that he did not have such information.

The governor stressed that there was no evidence of any conflict of interest.

I know of three transactions, if there are strong indications or evidence, it should be submitted to us

He noted that he had knowledge of three transactions.

"I only know of three transactions that we were asked about and we responded. We did not find anything there that could indicate insider trading, which is absolutely unacceptable. If there is a strong indication or evidence of such activity, of someone having made money through insider dealing, it should be submitted not only to us but also to the competent institutions," he said.

Asked if what would change as of 1 March 2022 was actually an indicator that previous practices were wrong, Vujčić said: "No. What has been going on since 2001 is that standards are being raised. In 2001 a ban was introduced for ECB management to hold stocks. In 2015 the ECB adopted an ethics framework guideline with which we have now aligned, I signed that decision last year. The standards were as they were and they are being raised. In ten years' time, they will be even higher. We will adjust to the new ECB guideline by 1 June 2023," he said, recalling also that different central banks have different regulations.

"In the United States the central bank allows trading in stocks also to the management. Some central banks have even stricter standards than the ECB, some do not allow employees to have deposits in banks," Vujčić added.

I also spoke to prime minister

Vujčić said that the government did not seek a comment on the case, but he pointed out that he had spoken "with all relevant persons".

"I have spoken to everyone I have to, including the prime minister. He asked what was happening," said Vujčić.

Asked whether he was prepared to step down if insider trading was proven, Vujčić said: "If I traded in inside information, then definitely, I will step down immediately. If an employee has done it, and we didn't know it, then it's the employee's responsibility".

Vujčić once again called for information to be delivered to the HNB and said an inspection would be conducted.

"It is even more important that someone outside the HNB conducts that inspection, so that it is confirmed or otherwise," said Vujčić, adding that the inspection was usually carried out by HANFA.

January 12, 2022 - The project Fortress ReInvented is carried out by the Šibenik City Museum and has been recognized by the European Commission and used as an example of good practice and use of European funds.

The project Fortress ReInvented- An innovative approach and digital content on the historical forts, whose head is the Šibenik City Museum, has been highlighted as an example of good practice to successfully use European funds to implement innovative techniques and content in the presentation of cultural heritage to the general public in the interactive guide The Cultural Funding Guide, which is published by the European Commission at the end of the year, reports HrTurizam.hr.

The guide presents all funding opportunities available at the EU level for the cultural and creative sectors in the coming period. In one place, here is the information for a total of 75 funding opportunities from 21 EU programs, from the Creative Europe and Horizon Europe programs to the Structural Funds and the InvestEU Fund. In this interactive tool, all European stakeholders in the cultural and creative sectors will be targeted in just a few "clicks" to the most appropriate EU financial support available to them. Presenting these opportunities is complemented by inspiring experiences and best practice examples.

Thus, the Šibenik project was found in this guide, noting that the Fortress of St. Mihovila transformed two underground water cisterns, dating from the 15th century, into time capsules and revived the legend of the city's origins and the turbulent history of the fortress through 3D video mapping projection techniques.

The guide published by the European Commission aims to help you navigate the many EU financial instruments, understand the opportunities available to applicants and, ultimately, facilitate access to these funds. Interested stakeholders in the cultural sector, as well as other interested parties, can adjust the search for funding opportunities based on their needs, the individual sector, or the type of organization they represent, which can be helped by completing the survey. The full guide can be found HERE.

For more, check out our dedicated travel section.

January 12, 2022 - The TZ2 form refers to the period 01/01/2022 to 12/31/2022 and must be submitted by Saturday, January 15th. Here are some important considerations for filling it out.

Persons who provide catering services in the household or on the family farm must submit to the competent Tax Administration a special TZ2 form by January 15 of the current year for 2022, according to the data on the number of beds from the previous 2021, reports HrTurizam.hr.

According to the instructions for filling in published by the Ministry of Tourism and Sports (MINTS), it should be noted that in point 17 of the TZ2 form, the total amount of receipts from the traffic records from 2021 is entered.

The annual lump sum membership fee can be paid once until July 31 of the current year or in three equal installments, with the first installment due on July 31, the second on August 31, and the third on September 30 of the current year.

Exceptionally, persons who will obtain a decision on approval for the provision of catering services in households or family farms for the first time in the current year (2022) shall submit the TZ2 form within 15 days of the enforcement decision on approval for providing catering services, and the lump sum membership fee is paid once until December 31 of the current year.

The number of beds, the number of accommodation units, and the capacity for accommodation facilities for persons providing catering services in the household or on the family farm are calculated according to data from the eVisitor system and determine the payment of the tourist membership fee for 2022.

Renters who are non-residents must submit the TZ2 form to the Tax Administration, Branch Office for non-residents, Avenija Dubrovnik 32, 10000 Zagreb. Please note that landlords who have obtained a decision to deregister the provision of catering services in the household by 31 December 2021 are not required to submit the TZ2 form.

Taxpayers referred to in Article 10 of the Tourist Membership Membership Act shall continue to submit the TZ1 form by the end of February or April.

The TZ2 form that has to be submitted by 15 January 2022 refers to the period from 01/01/2022 to 31/12/2022. For any additional questions, please contact your tourist board.

For more, check out our dedicated business section.

January 12, 2022 - In the past two days, stormy winds on the Croatian coast on Tuesday tore down trees and electrical cables, raised the roofs of houses and overturned vehicles, and some citizens were without electricity for several hours.

HRT News reports that yesterday the County Center 112 Rijeka received several reports of disasters caused by stormy winds in the Primorje-Gorski Kotar County, according to the website of the Directorate of Civil Protection.

In the area of ​​the municipality of Čavle, several telephone poles were broken and a tree fell on the road. In Crikvenica, in King Tomislav Street, the wind blew away part of the tin roof of the family house. A telephone pole in Selce was broken, a tree in the yard of a family house was knocked down in Dramalj, and a truck overturned on a local road in the Kraljevica area. An electric cable fell on the family house in Križišće.

In the area of ​​Rijeka, the tree fell on a personal vehicle in Braće Stipčić Street and in the Orehovica area, and in a warehouse in the port, the wind blew away part of the tin roof. Due to broken poles on the transmission network of Tribalj, Drivenik, and Grižane in Vinodol municipality 1000 users were without electricity from 12:22 pm to 14:26 pm, and in Bribir in Vinodol municipality 200 users from 13:15 pm to 15:14 pm.

In Split-Dalmatia County, the County Center 112 Split received about 20 reports during the day about fallen trees, broken branches, traffic signs, and various objects that fell on the road and obstructed traffic. According to the reports, the competent services were informed. There were no reports of major damage.

In Dubrovnik-Neretva County, the "Dr. Franjo Tuđman" bridge was closed to all traffic due to strong winds from January 10 at 4:50 pm to January 11 at 11:00 am. It was closed again at 3:50 pm, the Civil Protection Directorate reported.

For more about the weather in Croatia, be sure to check Total Croatia's guide.

To read more about lifestyle in Croatia, follow TCN's dedicated page.

January the 12th, 2022 - Obonjan island used to be just another of Croatia's many uninhabited islands dotted along the coast. A few years ago, it underwent a transformation and is now a place many pay a visit to. It seems yet another transformation of sorts is on the cards for Obonjan island.

As Poslovni Dnevnik writes, Zeljko Perekovic became the owner of the tourist company "Obonjan Riviera" last year, and he appointed a new three-member Supervisory Board at the extraordinary assembly of the company.

In addition to him, Kristijan Perekovic and Irena Dolencic are now in that body, as opposed to Drazen Grubisic-Caba, British national Daniel Anthony Blackledge, and Slovenian national Tadej Volf. The latter trio represented the interests of a British company for the organisation of the "Sound Concert" as the former majority owner of "Obonjan Riviera", and its co-owners, the Croatian "Gratiousus" and the Slovenian travel agency "CMT".

Zeljko Perekovic, a prominent entrepreneur whose main business for three decades now has been self-service coffee machines for the Croatian company "Spaz" which boasts 100 employees, as well as more and more business which deals with properties, pulled the Sibenik company out of a multi-million blockade, interrupted the court proceedings at the Commercial Court in Zadar and took over the ownership, writes Slobodna Dalmacija.

According to available information, he allegedly paid at least 12 million kuna to the account owned by "Obonjan Riviera", a company to which he has already been appointed as the interim bankruptcy trustee, and he also took on other obligations of the company during the coronavirus crisis. Perekovic will further develop and improve the specific tourist project for which Obonjan island has become well known within his own business vision and in partnership with his sons Domagoj and Mislav.

This father and his two sons have been developing the concept of camping tourism for twenty years now, and the last such project, after leaving a similar one in Novalja on Pag, is "Olivia Green Camping", in a large olive grove near Tisno, with luxury, family wooden houses and swimming pools for 700 guests and the overall service at the level of a five-star hotel.

To that extent, Perekovic's takeover of "Obonjan Riviera" on Obonjan island is logical, since a type of camp with 196 luxury tents, 40 mobile homes and a hotel with 33 beds was established there, with a decision to expand its capacities and reach a maximum of 200 to 250 employees in a few years, with large-scale investments also planned.

According to Mislav Perekovic, during the main summer tourist season, Obonjan island would become a family holiday destination with a distinct ecological programme, while outside the summer months, the offer would be directed towards other types of content and events from the so-called event-tourism sector. His son Mislav completed his studies in tourism management and then specialised in sustainable tourism, while Domagoj's department is investment.

''Obonjan island is very attractive,'' said Domagoj Perekovic, announcing the opening of the complex on May the 1st, 2022.

''Obonjan island gets under one's skin, and after last summer, when we mostly cleaned the area up since the island wasn't really worked on due to the coronavirus pandemic and it was only open for 45 days, we noticed that business teams are becoming more connected,'' added Domagoj.

The Perekovics have renewed their contracts with some former employees on Obonjan island, and they sincerely hope that the tender they will announce at some point in January for the employment of 140 workers together with the seasonal workers will attract local people, Slobodna Dalmacija writes.

For more, check out our dedicated business section.