Business

ZAGREB, March 2, 2019 - Preliminary figures show that Croatia Airlines incurred a loss of 82.2 million kuna in 2018, which is a much poorer result than in 2017 when the flag carrier posted a profit of 25 million kuna, which was owing to the partial sale of slots at Heathrow Airport in the amount of 138.6 million kuna. Excluding the sale of slots, the loss in 2018 was down by 28% or 31.4 million kuna compared to 2017, while fuel expenses rose by 71.3 million kuna due to an increase in oil prices, the airline's financial report for 2018…

Investment in Croatia has stagnated in certain important areas, despite interest from domestic investors having been drawn to other more promising areas, such as the hotel sector. Foreign investment in Croatia, despite having occurred in some quite large projects, is still dwindling. As Marija Crnjak/Poslovni Dnevnik writes on the 1st of March, 2019, the focus of investors last year was largely on shopping centres and of course the apparently eternal hotel sector, although figures didn't exceed those seen during the year before the crisis hit. The value of commercial real estate transactions last year was twice as high as it was…

ZAGREB, March 1, 2019 - The European Union unemployment rate in January dropped to its lowest level since Eurostat started tracking monthly data, and Croatia's unemployment rate also decreased slightly and was below the eurozone average for the third consecutive month, according to figures released by the EU's statistical office Eurostat on Friday. The EU28 seasonally adjusted unemployment rate was 6.5% in January 2019, down from 6.6% in December 2018 and from 7.2% in January 2018, this being the lowest rate since October 2008, Eurostat said. Eurostat estimates that 16.222 million men and women in the EU28, of whom 12.848…

ZAGREB, March 1, 2019 - Economy Minister Darko Horvat said on Friday an "analytical discussion" about models and programmes for the overhaul of the Uljanik Group would be held next week with the recently selected strategic partner Tomislav Debeljak, who is the owner of the Brodosplit shipyard, and the most suitable model would be later presented to the government and Prime Minister Andrej Plenković. Horvat said that the ministries of economy and finance would begin the analytical discussion with Debeljak and the Uljanik management on Monday, and the outcome of the discussion would be presented to the government. The minister…

ZAGREB, March 1, 2019 - The implementation of the settlement agreement between Agrokor's creditors will start on 1 April when the management of the concern, currently run by the Emergency Administration, will be transferred to a new company called Fortenova Grupa, according to a decision made by Agrokor's interim creditors' council. Fortenova Group is the new name for an umbrella company that will replace Agrokor d.d. and start operating on 1 April, according to a press release issued by Agrokor. Of the 159 companies doing business within the Agrokor Group, 77 companies run by the Emergency Administration will be the…

ZAGREB, March 1, 2019 - The Svilaj bridge across the Sava River along the Vc pan-European road corridor, which is being built by Croatia and Bosnia and Herzegovina, is expected to be completed this autumn, Croatian Transport Minister Oleg Butković said at the construction site on Thursday. Butković said that the 22.3 million euro highway bridge was one of the most important infrastructure projects currently underway in Croatia. The project is financed by Croatia and Bosnia and Herzegovina in the 50:50 ratio, and the Croatian part is co-financed from EU funds. "This bridge is of the utmost importance for the…

ZAGREB, February 28, 2019 - The volume of real estate transactions on the Croatia real estate market in 2018 was 810 million euro, which is twice as much as in 2017 and the result of a positive investor sentiment and attractive returns, while this year a similar investment volume is expected, mostly in the tourism sector and on the office space market. This is shown by the latest analysis of the Croatian office of Colliers International for 2018 and estimates for 2019 which the company's consultants presented at a news conference on Thursday. Colliers Croatia director Vedrana Likan said that…

ZAGREB, February 28, 2019 - Prime Minister Andrej Plenković said on Thursday that in line with a report by the European Commission of Wednesday, his government would step up preparations for the introduction of euro as the official currency because, among other things, it would contribute to Croatia's long-term sustainable economic growth. Addressing the second session of the National Council to introduce the euro as the official currency in Croatia, Plenković said that accession to the euro area was one of the government's political goals and recalled that by signing the accession treaty with the EU, Croatia had very clearly…

ZAGREB, February 28, 2019 - The state-run Croatian Road operator (HC) has decided to select the Greek company J&P Avax to build the Duboka - Šparagovići/Zaradeze section of access roads to Pelješac Bridge at the price of 464.9 million kuna before Value Added Tax. According to a press release issued by the HC on Thursday, a total of seven bids were submitted for the construction of the 12-kilometre long access road. Of those seven bids, four were shortlisted, and the commission found the offer made by J&P Avax, to be the most favourable in financial terms. The selected bidder is…

February 28, 2019 - Another important international health tourism conference is coming to Croatia. As previously reported on TCN, the 5th Annual Medical Tourism Conference will take place in Zagreb on March 13-14. TCN catches up with one of the keynote speakers, Ognjen Bagatin, CEO of Bagatin Clinic in Zagreb (and also now in Split).  The 5th Annual Medical Tourism Conference will take place from March 13. How important is the choice of Zagreb for medical tourism in Croatia? We are delighted that the conference will be held this year in Zagreb after the successful 2018 event in Berlin.  Croatia…