Thursday, 11 June 2020

FM: EU Mobilising €4 BN for Eastern Partnership States

ZAGREB, June 11, 2020 - The engagement with the six Eastern Partnership states remains an EU priority and almost €4 billion in aid has been mobilised for them, Croatian Foreign Minister Gordan Grlic Radman said on Thursday after a video conference with his counterparts in the initiative.

"We confirmed that the engagement with these six states remains a European Union priority," he said after two video conferences, one on tourism and the other an informal meeting of EU and Eastern Partnership ministers.

The EU is solidary with those states, as shown by the mobilisation of €962 million as part of the Team Europe package for the fight against the COVID-19 pandemic and €3 billion in additional macro-financial assistance, said Grlic Radman.

He said he was especially pleased that this meeting took place during the Croatian presidency after the Zagreb Summit with Western Balkan countries in May.

The meeting was held ahead of a June 18 video conference of the 27 leaders of EU member states and the six leaders of the Eastern Partnership states Armenia, Azerbaijan, Belarus, Georgia, Moldova, and Ukraine.

"I supported the efforts the six Eastern Partnership states are investing in reforms," said Grlic Radman. "I encouraged them to continue on that path because their achievements also contribute to our security, stability, and prosperity."

"In particular, I pointed to the need to deepen economic cooperation, invest in youth and connecting and environmental protection projects, strengthen the ability to respond to crises such as the current pandemic," he said.

He underlined that Croatia was commended for its Council of the EU presidency, which ends on June 30, to be taken over by Germany.

Thursday, 11 June 2020

HGK Launches Platform for Virtual Meetings Between Business People

ZAGREB, June 11, 2020 - With the support of the Enterprise Europe Network, the Croatian Chamber of Commerce has launched "Go global - Go virtual", a project aimed at expediting the recovery of the domestic economy after the COVID-19 crisis, the HGK said on Thursday.

It concerns the organization of online B2B meetings for Croatian companies with foreign partners on markets in which Croatian business people, according to a survey, are most interested - Slovenia, Russia, Austria, Germany, the Czech Republic, Slovakia, Poland, and Hungary.

The first virtual meetings will be organized with business people from Slovenia, Ivan Barbaric of the HGK said. Croatian companies may apply for them by June 19 and the meetings with Slovenians will take place on July 2.

Thursday, 11 June 2020

Amnesty International Claims Croatian Police Beat, Tortured Migrants

June 11, 2020 — Human rights organization Amnesty International claims Croatian police tortured and abused migrants trying to enter the country from neighboring Bosnia and Hercegovina.

The report claims men in black uniforms identical to those worn by Croatian police spent five hours abusing 16 Pakistani and Afghan immigrants, then mocked their injuries by smearing food on them.

Croatia’s allegedly stringent blockade of its external borders with Serbia and Bosnia fuels a steady drumbeat of abuse accusations coming from migrants pushed back across the border.

“The European Union can no longer remain silent and willfully ignore the violence and abuses by Croatian police on its external borders,” Deputy Director of Amnesty International’s Europe Office Massimo Moratti said. “Their silence is allowing, and even encouraging, the perpetrators of this abuse to continue without consequences.”

The migrant crisis, which peaked in 2015, lingers in this corner of Europe, albeit smaller. The influx of newcomers reaching Bosnia continues unabated. Officials have mulled putting a border fence between the two countries, although Croatia’s Prime Minister Andrej Plenković dismissed the idea.

“I am opposed to erecting wire fences between Croatia and Bosnia and Herzegovina. We are two neighboring countries directed to each other and a message like that would not be good,” Plenkovic said recently.

Croatia has the largest external border of any EU member state and has held its position as a gatekeeper to Europe with pride. But Moratti claims the reports of abuse stain not only the country but the entire bloc.

“We expect nothing less than the condemnation of these acts and an independent investigation into reported abuses, as well as the establishment of an effective mechanism to ensure that EU funds are not used to commit torture and unlawful returns,” he said.

The human rights organization shared its report with Croatia’s Interior Ministry, which has yet to respond. The nation’s top cops routinely rebuff any accusations it uses excessive force in protecting its borders.

Amnesty’s report claims about Croatian police captured the 16 immigrants near Plitvice Lakes on May 26. The officers allegedly bound and tortured the migrants, then smeared food on their injuries.

“They did not give us a chance to say anything at all when they caught us,” Tariq, one migrant, told Amnesty International. “They just started hitting us. While I was lying on the ground, they hit my head with the back of a gun and I started bleeding. I tried to protect my head from the blows, but they started kicking me and hitting my arms with metal sticks. I was passing in and out of consciousness the rest of the night.”

The migrants reported between eight and 10 officers wearing Croatian Special Police’s balaclavas and black uniforms fired their guns in the air, then kicked and beat the immigrants with metal sticks or pistol-whipping them. The police then spread condiments — ketchup, mayonnaise, and sugar — onto the men’s hair.

Up to 10 of the migrants suffered serious injuries, including 30-year-old Tariq, who is now wheelchair-bound, with three out of four extremities in casts. Doctors who treated the men reported broken noses, arms and legs, cuts, blunt force traumas, collapsed lungs, and multiple fractures. It will take months for the men to recover, the doctors added.

A laundry list of NGOs and news organizations have reported Croatian officers’ alleged practice of confiscating cell phones and SIM cards, beating then transporting the migrants back across the border with Bosnia and Hercegovina. The interior ministry just as frequently denies any existence of an illegal “pushback” program.

Amir, a migrant from Pakistan, claimed the Croatian officers seemed jovial throughout the ordeal. 

“We were already tied, unable to move and humiliated; there was no reason to keep hitting us and torturing us,” he said. “They were taking photos of us with their phones and were singing and laughing.”

After the beatings, the masked men sand “Happy Birthday” around the huddle of migrants. Five hours after the torture began, men allegedly handed the migrants off to the Croatian Border Police, which left the group at an outpost near the border with Bosnia. Those who could walk back to the Miral camp in Velika Kladuša did. NGOs sent for the five who could not move under their own power.

Thursday, 11 June 2020

Skoro: There Are Better Solutions in Energy Than Buying MOL's Stake in INA

ZAGREB, June 11, 2020 - Homeland Movement leader Miroslav Skoro said on Thursday he did not agree with the government's plan to buy MOL's stake in INA because he explained in Bjelovar, that money could be used for much better solutions that would increase Croatia's energy independence.

He described the sale of Croatian oil company INA as a process "in which a number of governments took part and which has caused irreversible damage to Croatia."

The Hungarian stake in INA has been estimated at HRK 16-17 billion and I believe that Croatia can make much better solutions in the energy sector for that money, Skoro told reporters.

"No one can buy Croatian oil sources, they can only get a concession. We import 40% of energy, yet we don't consider hydro-electric power plants as energy sources but have wind parks... We won't run further into debt to procure energy."

Skoro said the introduction of the euro should be put to a referendum, criticised the government's tax policy, saying foreign investors had a rule called Anything But Croatia and said he would join the March for Life.

He said the focus of his visit to Bjelovar was agriculture. "We live in a country which isn't sovereign in many areas, notably in the agriculture and food sector. The crisis caused by coronavirus gives us the opportunity to change a policy which is concentrated on trade and imports because we can feed not only Croatia but a much larger region too."

Thursday, 11 June 2020

Croatia Issues 11-year €2 bn Bond

ZAGREB, June 11, 2020- The Finance Ministry on Wednesday issued an 11-year €2 billion bonds on the international capital market at 1.5% interest and 1.643% yield, the ministry said in a press release on Thursday.

The issue was arranged by Banca IMI/Privredna Banka Zagreb, Barclays, Deutsche Bank, and J.P. Morgan.

The transaction was announced on Tuesday, after which the ministry held a global teleconference to prepare the broadest market possible.

The investment community's interest was exceptional, with more than 400 potential investors, which was helped by investors who invest only in investment credit rating securities.

Investors were from the UK, the US, Germany, Italy, Austria, France, Benelux as well as Central and Eastern European countries. Strong demand was generated in the amount of €8.45 billion, about 4.2 times more than the nominal amount of the issue.

This enabled Croatia to make the latest borrowing 45 basis points below the initially published price, the ministry said.

The revenue from the issue will be used to refinance a US$ 1.25 billion euro bond due in July. Nearly HRK 360 million will be saved on interest annually.

The rest of the issue will be used to finance government aid for businesses affected by the COVID-19 pandemic, as envisaged in the revised 2020 budget in early May. In it, revenues from financial assets and borrowing increased from HRK 30.5 billion to HRK 63.4 billion. Until then, HRK 35.6 billion of that amount was already covered.

In February, the government issued three bond tranches in the amount of HRK 15 billion at 1% interest. In early May, it issued a seven-year bond on the domestic market amounting to €1.445 billion and refinanced an HRK 7.8 billion treasury note as well as making loan arrangements with banks in Croatia.

Credit agencies say the shock will be temporary

The ministry said the latest transaction came in the week after Fitch affirmed Croatia's BBB- rating with a stable outlook.

The stable outlook reflects the confidence that Croatia will maintain medium-term fiscal stability, while at the same time extending short term support for the fight against the COVID-19 pandemic. In May, Standard & Poor's affirmed Croatia's BBB-/A-3 rating with a stable outlook, while Moody's affirmed the Ba2 rating with a positive outlook, the ministry said.

The agencies say the pandemic will weaken Croatia's economic and fiscal results this year, but that the shock will be temporary and that previous fiscal data improvements and the stronger economy support the country's credit profile, the ministry added.

The final conditions of the issue and the level of interest once again confirmed Croatia's strong status as an attractive issuer on the international capital market, it concluded.

Thursday, 11 June 2020

FinMin: Investors in Bond Recognise Croatia's Successes

ZAGREB, June 11, 2020 - Finance Minister Zdravko Maric said on Thursday the new euro bond issue met with big interest among investors and that they recognised Croatia's successes in the affirmation of the investment credit rating, drawing closer to the euro area and the fight against COVID-19.

Speaking to the press, he said investors' interest in the new bond was 4.2 times bigger than the issue, i.e. €8.4 billion. "I can't remember such a big interest among quality investors across the world."

That means that "several big and important houses recognised what was done and what is being done in Croatia" and that "our image has been affirmed in international financial circles," said Maric.

The new euro bond will be used to refinance a dollar bond which was issued ten years ago and is due on July 10, and its interest of 6.6% is replaced with 1.5%, which is a considerable saving, he said.

The Finance Ministry on Wednesday issued an 11-year €2 billion bonds on the international capital market at 1.5% interest and 1.643% yield. The issue was arranged by Banca IMI/Privredna Banka Zagreb, Barclays, Deutsche Bank, and J.P. Morgan.

The investment community's interest was exceptional, with more than 400 potential investors, which was helped by investors who invest only in investment credit rating securities, the ministry said today.

The revenue from the issue will be used to refinance a US$ 1.25 billion euro bond due in July. Nearly HRK 360 million will be saved on interest annually. The rest of the issue will be used to finance government aid for businesses affected by the COVID-19 pandemic, as envisaged in the revised 2020 budget.

Thursday, 11 June 2020

Democrats-Croatian Labour Party Coalition Presents Election Platform

ZAGREB, June 11, 2020 - The Democrats-Croatian Labour Party coalition on Thursday presented its parliamentary election platform and the first candidates on its slates.

Democrats president Mirando Mrsic said their platform "10 challenges and 10 solutions" was telling citizens that they were willing to make cuts that no political elite or party managed or wanted to make.

"Without cuts in the autumn and in 2021, we will not only lag behind in Europe but be Europe's appendix," he said.

"Both big parties, the HDZ, and the SDP, are offering us a beautified picture of Croatia in the autumn, yet a time of big changes lies ahead," Mrsic said, adding that "the HDZ is offering with its platform a safe smokescreen for even bigger plunder and the SDP isn't far behind with colourful and grandiose promises."

He announced progressive taxation of the wealthy, saying it is the only way to reduce the social differences between the enormously rich and the increasing number of impoverished citizens, the revocation of privileged and war veterans' pensions, a review of the Vatican agreements, and the ban of Nazi and fascists insignia, saying they promote a dark period of human history.

Labour Party president David Bregovac said they were pushing for adequately paid Sunday work and announced at least 50% higher wages and mandatory rest days after Sunday work as well as streamlined labour legislation.

Thursday, 11 June 2020

Maritime Borders Open, 70,000 Tourists Announce Arrival in Croatia

June 11, 2020 - Through an online form launched on the Ministry's website, 200,000 people announced their arrival in Croatia, of which 70,000 are for tourist stays.

Jutarnji List reports that given the favorable epidemiological situation, the government decided on Wednesday to open permanent border crossings for international maritime passenger traffic that were temporarily closed due to COVID-19, and to lift the temporary postponement of opening seasonal maritime border crossings.

By amending the Decree on border crossings, permanent border crossings in Umag, Poreč, Rovinj, Mali Lošinj, Korčula and Ubli are opened, as well as seasonal crossings Umag - ACI Marina, Novigrad, Sali, Božava, Primošten, Komiža, Hvar, Vis, Stari Grad on the island Hvar, Vela Luka and Cavtat.

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The State Secretary in the Ministry of the Interior, Terezija Gras, reported on the activities of the Croatian Civil Protection Headquarters and pointed out that 14 more decisions of the Headquarters are in force.

She also reported that through an online form launched on the Ministry's website, 200,000 people announced their arrival in Croatia, of which 70,000 for tourist stays, mostly from Slovenia, Italy, Bosnia and Herzegovina and Germany.

The government also adopted several reports for 2019, on the work of the Croatian Employment Service, and on the work of the National and University Library in Zagreb.

In 2019, 224,187 job vacancies were received and 454,195 eligible candidates were sent to jobs. Cooperation has been achieved with 1,150 employers, Labor Minister Josip Aladrovic reported.

The Government also accepted the report on the use of funds from the budget stock of the state budget of the Republic of Croatia for April 2020.

State Secretary at the Ministry of Finance Zdravko Zrinušić reminded that the budget revision for this year reduced the budget stock from 100 to 50 million kuna, and said that in the first four months it was executed in the amount of 12.4 million kuna.

Thursday, 11 June 2020

HDZ's Idea to Create Own Version of "Booking.com" Falls Spectacularly Short

As Novac/Dora Koretic writes on the 10th of June, 2020, where does one possibly start when it comes to HDZ's announcement about creating a domestic booking portal which, as some on the political scene belonging to a certain party have dreamed, should offer Croatian accommodation to foreigners for only five percent of the commission, and do it better and more successfully than the world's most well established platforms?

We should first look at the sheer absurdity of the idea that a state institution, possibly the Croatian National Tourist Board (HTZ), would have the financial means and work capacity to maintain a system in which the world's most famous booking platforms invest 10 billion US dollars a year in advertising, which is as much as 200 times more than the CNTB's annual budget. On top of that, as Emanuel Tutek from BlueRock explained, this astonishing initiative could best be described by the words “selling hot water”, by which we mean the designing of products that quite simply already exist.

''Here we have several perspectives: why offer a product that isn't new and innovative in any way shape or form, and that has been functioning better and more successfully across the world for many years, and then how would such a system be financed at all, do they know that international companies invest up to several billion dollars a year alone in the development and the research of such platforms!?'' Tutek wonders, doubting the skill of the Croatian state and the utterly dire public administration to maintain such a complicated system.

''Let's just remember how long we waited for our umbrella marketing agency to create a new website or launch an e-Visitor system that is far less complex than a booking platform that should have worldwide reach would be. If the idea behind this was to improve domestic accommodation, then it should not be done by encouraging its sale but by encouraging its improvement, which will then affect its better placement on foreign booking platforms,'' says Tutek.

The founder of the Rentlio application for the management of tourist facilities, Marko Misulic, said that this pre-election initiative from HDZ stands out primarily for its market unfoundedness, its total departure from reality and the (very) questionable quality of its performance.

''The strength of the global leaders among booking platforms lies precisely in consolidating and generating demand, in their global recognition and standardisation of the user experience. I don't see a way for one state portal to achieve all of this. It's difficult for me to assess how this state booking portal plans to generate demand that would compete with global platforms and offer it all for a much lower price of the service than the average market price. But what isn't difficult to assess is the outcome of such ideas,'' says Misulic, warning that HDZ has many other ways at its disposal to increase the competitiveness of the domestic tourism sector. This isn't one of them.

In addition, the world has already followed several similar national initiatives, and they all burned down before they came to fruition.

As Horwath HTL partner Sinisa Topalovic warns, national booking portals aroused a level of enthusiasm among political elites way back in the early 2000s when some countries started with such ideas and ingloriously ended their ''trip'' when entering into such deep entrepreneurial waters.

''This isn't merely a single project but a serious business venture that, in addition to investing in development, requires top quality customer service, support in key foreign languages, the most advanced technological infrastructure available and adequate marketing which, it turns out, should be financed from five percent commission,'' says Topalovic when referencing HDZ's truly bizarre idea.

In addition, the founder of thinktourism, Katarina Milicevic, points out that Croatia doesn't even have a unique system of analytics in tourism adapted to today's digital needs, let alone the strength to invest in something so complex.

''I assume that the creators of this idea aren't aware of how complex the system is, how much time and analysis it takes to create such a system and the weight of such an investment if it is meant to function according to the requirements of today's and future markets. There are currently many more important things in the Croatian tourism sector to deal with than this. In addition to so many global platforms that have been working for years on improving, adapting to market trends, credibility and the strength of their own brand, this idea just has no financial justification,'' claims Milicevic.

If all this has not been enough, skepticism should be expressed in the willingness of Croatia's plethora of private renters to entrust their business to a national platform...

Be it right or be it wrong, in a country where the infamous and often mysterious world of the zimmer frei, sobe and free rooms sign lives on hiding its earnings from the cruel scissors of the tax man - does anyone really believe that private renters, between Booking.com and Airbnb, will choose a platform that sits right in the hands of the state? Probably not.

For more, follow our business page.

Thursday, 11 June 2020

CycleCroatia E-Bikes Presented in Sinj this Weekend

June 11, 2020 - The beginning of June in Sinj has always been full of sports events. Unfortunately, due to the corona crisis, many sports and other events were canceled because of the epidemiological situation. To justify the name and sports spirit of the city, this Saturday and Sunday, June 13 and 14, CycleCroatia, in cooperation with the Sinj Tourist Board and Aeroclub Sinj, organizes a presentation and training of MTB and racing bikes, both electric and classic, along with a lecture and workshop for the youngest participants.

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The company CycleCroatia has been engaged in cycling tourism for many years, and two years ago, they also had a branch office in Kaštel Stari, where they launched their new Bike Point. They believe that cycling is one of the most beautiful ways to discover not only new landscapes but also your surroundings. Accordingly, the essence of their business is cycling tours. Cycling is generally beneficial to health, certainly faster than walking, and yet allows you to stay in touch with nature and the environment.

With this goal, CycleCroatia presents the benefits of cycling in Sinj, introducing curious people to e-bikes, but also to promote the Cetina region as an excellent destination for cycling, which is also one of the main goals of the Sinj Tourist Board.

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During these two days from 9:00 to 17:30, with a free presentation, you will have the opportunity to get acquainted with a wide selection of different types of bicycles, master the basic skills of repair and maintenance of bicycles, and the youngest participants, through many interesting workshops and games, can learn proper traffic behavior and how to provide the most basic first aid. Respecting all the recommended measures of the CNIPH, a sufficient number of bicycles will be provided for all interested participants, so early applications are required.

All registered participants will have the opportunity to cycle in two organized groups. The departure time is at 10 am and 3 pm from Piket Sports Airport. You will ride with trained bicycle guides along the path through Sinjsko polje on a total length of 21 km.

The most beautiful possible way to spend a weekend, actively and in nature, don’t forget to save the date!

June 13 and 14, 2020, arrive at 9:00 am at Piket Sports Airport.
For more information and registration contact:
CycleCroatia (Via Tempora d.o.o.)
+385 91 602 2215
This email address is being protected from spambots. You need JavaScript enabled to view it.

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