Minister Oleg Butković has stated that the company's business has now been stabilised, but who could the potential new majority owners of Croatia Airlines be?

As Poslovni Dnevnik writes on the 22nd of February, 2019, Minister of Maritime Affairs, Transport and Infrastructure, Oleg Butković, said that it was difficult to estimate what the potential ownership ratio could be in relation to the state, as well as with a potential strategic partner for the enfeebled Croatia Airlines.

"It's hard to say that this will be a 50, 60, 70 or 100 percent sale of the ownership of Croatia Airlines, and in any case, there are those who are interested, and international companies are coming and are interested. In that sense, we're waiting for the whole process to begin. Then we'll who will place an offer, who is the most serious, and how this whole situation will go further,'' Butković told HRT.

"It [Croatia Airlines] has transported a record number of passengers last year, and we're insisting that Croatia Airlines remains a Croatian brand, to keep hold of all the routes on which it is currently flying, the acquisition of new aircraft, the modernisation of the new fleet, and the opening up of new routes, that's in function with Croatian tourism and with the whole economy,'' the minister added.

Butković didn't want to talk about any possible solutions for Croatia Airlines for the time being. He believes that the commission which has now been formed must delve much deeper into all the information and operations of Croatia Airlines and see what is, and what isn't a healthy part of that company, or what else can be done from within company in order to boost its function.

Gordan Maras said that Croatia Airlines should find a strategic partner with which the burdened flag carrier would remain a Croatian company.

"We need to find a partner that would work with Croatia Airlines on the level of world-wide destinations, that they're strong and outside of the EU, and not in the situation in which we just end up as their distributor. My position is that we need to find a partner outside the EU in order to develop that destination story," Maras said.

Minister Butković said that Croatia cannot influence exactly where a potential strategic partner will come from.

"Of course, there are certain restrictions as far as EU legislation is concerned, nobody who isn't from the European Union can become the majority owner of Croatia Airlines. There are many things that we have to take into account before the final decision is made,'' he concluded.

Make sure to stay up to date with the unfolding Croatia Airlines situation and much, much more by following our dedicated business page.

Good news for respected Croatian General Ante Gotovina as his tuna company signs a contract with a Metro, which will now result in his company's top quality fish ending up exclusively on Croatia's shelves for the hotel and catering industry.

As Poslovni Dnevnik writes on the 6th of February, 2019, with a presentation of the methods of the processing and the preparation of the popular bluefin Adriatic tuna, visitors to the Adriatic Gastro Show will get acquainted with the famous culinary presentation of the well-known "Batelina" chef David Skoko.

At today's Adriatic Gastro Show held in the Dalmatian capital of Split, Metro will introduce the newest product on its already very rich shelves to caterers, hoteliers and all those who work in the field - the Adriatic bluefin tuna.

As Slobodna Dalmacija reported, Metro and Pelagos net farm, the company belonging to General Ante Gotovina, have now signed a cooperation agreement for the sale of the sought-after fish. Metro will offer bluefin sushi/sashimi quality tuna, which will be distributed and made readily available to professional Metro customers in wholesale centres throughout the Republic of Croatia, meaning that it will be being sold exclusively on the Croatian market.

''We're proud that Metro can boast of [this type of] cooperation which makes us the exclusive supplier of Adriatic bluefin tuna from Pelagos net farm for the Croatian HoReCa market. Metro cooperates with numerous restaurants and hotels all over the Republic of Croatia, so we're continually trying to improve our range to offer them the best products according to international culinary trends.

Make sure to stay up to date with not only Ante Gotovina's business, but with Croatian companies, products and services, as well as doing business in Croatia, and the overall business and investment climate by following our dedicated Made in Croatia and business pages.

Most of Croatia's biggest entrepreneurs are located on the northern Adriatic islands, and Croatia's biggest employers are still in the tourism and trade industries.

As Poslovni Dnevnik/Darko Bicak writes on the 6th of February, 2019, according to the analysis of the Financial Agency (FINA), which included details on entrepreneurs operating in the Republic of Croatia, there are 4,322 of them across 51 cities and municipalities in total who work as classified entrepreneurs, and in 2017, the largest number of entrepreneurs were in the field of providing accommodation and food preparation and serving - 903 of them. This tourism sector has now achieved its highest total revenue (almost 2.7 billion kuna), which is 25.6 percent of total income of island entrepreneurs.

Following those in tourism are entrepreneurs in the field of wholesale and retail trade - 656 of them. 2.2 billion kuna or 21.3 percent of total revenues and entrepreneurs are in this field. Construction is ranked third with 472 entrepreneurs and 1.4 billion kuna in revenues, which is 13.7 percent of total income of entrepreneurs from island areas.

In the case of tourism entrepreneurs, these were the highest in terms of the number of employees, with 6,585 employees or 30.6 percent of the total number of employees in all activities. This group of entrepreneurs also earned the highest revenues, and among them, according to the criterion of total revenues, the best are the hotel and tourism companies from Mali Lošinj, Hvar and Rab, or Jadranka hotels, Sunčani Hvar, and Imperial.

When looking at the ''size'' of these entrepreneurs, the largest number of micro entrepreneurs with 92 percent of the share in the total number of entrepreneurs are registered in the observed island areas. In addition, the same group have the largest share in profits, 42.7 percent, and employ the largest number of workers, making up a significant 33.8 percent of the total number of employed people in island towns and municipalities.

There are nine big companies based on islands in the Republic of Croatia, one in the area of ​​trade, Trgovina Krk from Malinska on Krk, one in the field of construction, GP Krk from Krk, one in the processing industry, Sardina from Brač and one in the area of ​​passenger transport, Autotrans from the island of Cres, while the remaining six are in the area of the ​​provision of accommodation and food preparation and service.

Make sure to stay up to date with Croatia's economic, business and investment climate by following our dedicated business page.

Click here for the original article by Darko Bicak for Poslovni Dnevnik

''We need to give young people the ability to learn and improve, to be informed about the measures implemented by the EU through EU funds and self-employment,'' stated the mayor of Virovitica.

As PD i VL native tim/Poslovni Dnevnik writes on the 4th of February, 2019, Virovitica is the fourteenth Croatian city in which the Ministry of Regional Development and EU Funds organised an informative-educational event entitled Regional Days of EU Funds, with the aim of informing the general public about the possibilities of financing from EU funds and strengthening regional development, as well as the possibilities for overall social and economic growth of Croatia which derive from EU fund availability. The event was held at the Virovitica Cultural Centre, which, ironically with the help of the EU funds, is about to be reconstructed soon.

Since Virovitica is mainly made up of agricultural land, its projects are mostly reported by small and medium-sized entrepreneurs and farmers, and according to the latest statistical data, Virovitica-Podravina County is among the best in Slavonia and Baranja in terms of EU cash withdrawal for rural development funds and for micro and small enterprises - up to 3,400 kuna per capita. "EU funds concern everyone, we're working on public projects in the public sector to set standards, and it's important to utilise them and improve business," said Ivica Kirin, Virovitica's mayor.

National development strategy

Virovitica-Podravina County Prefect Igor Andrović presented some statistical data according to which the VIDRA Development Agency in 2018 carried out 194 projects for small and medium-sized entrepreneurs and farmers, totaling a massive 450 million kuna.

"We've started on projects which concern Slavonia, Baranja and Srijem, such as the renovation of the hospital, the construction of a network of entrepreneurial incubators, the construction of a technological innovation centre, the hall for the Viroexpo fair and the energetic renewal of the cultural centre.

This year, we expect the realisation of about 150 projects we submitted last year,'' Andrović said, pointing out that with the new division in the four statistical regions, small and medium entrepreneurs in their area as well as in Sisak-Moslavina and Karlovac County will receive up to 75 percent of support from the EU funds, as opposed to the previous 45 percent.

State Secretary at the Ministry of Regional Development and EU Funds, Velimir Žunac, reminded attendees that by the year 2020, the seven-year financial period during which Croatia learned, made mistakes and matured will end, and more opportunities in the next financial period of 2021-2027 will come.

"EU funds are our reality - this county and this city are a good example of how European Union money can be used, as statistics show. In January 2017, Croatia was [withdrawing] under 9 percent of the contracted funds and by the end of last year, that number was more than 62 percent, or 6.6 billion euros of contractuality, we've made a significant step forward. In Croatia, 80 percent of public investment comes from the EU and it's important to maximise its use," Žunac pointed out.

He announced that the Croatian Government is ready and that the budget is stable for the new cycle and financial period from 2021 to 2027, recalling that the National Development Strategy of the Republic of Croatia is under development up until 2030, with twelve thematic and working groups working intensively.

An interesting panel discussion was then held, entitled "The development of Virovitica through European Union funds", involving representatives of various institutions as well as local entrepreneurs with experience of using money provided by EU funds. At the very beginning, Mayor Ivica Kirin emphasised that in the near future they want to identify the strategies and priorities that Croatia needs to develop which will create faster and better economic growth.

"We need more staff, especially those who will write projects. At the same time, we must give young people the ability to learn and improve, to be informed of the measures that the state is implementing through EU funds and self-employment," Kirin said.

The results were presented by Tihana Harmund, Director of the VTA Development Agency, who works for all institutions in Virovitica, companies, institutions, as well as for entrepreneurs and farmers, to whom she offers advice and assistance in writing up and implementing EU projects.

"We have prepared the documentation for all projects, including Pejačević Castle worth 82 million kuna, the improvement of Virovitica's water and communal infrastructure of 150 million kuna, as well as the renovation of schools, kindergartens and other institutions. For smaller projects, we provided the necessary funds to farmers, entrepreneurs and civil society organisations,'' stated Harmund.

Cooperation between the city and the county

''Services and institutions were networked for the preparation of projects, and the cooperation between the City of Virovitica and Virovitica-Podravina County is excellent,'' said Neda Martić from the VIDRA Development Agency.

"An entrepreneur can now get a valid building permit in two days, and in addition to being a regional coordinator, our agency is working on strategy and writing up infrastructure projects. We currently have 245 projects related to the economy,'' Martić added.

Make sure to stay up to date by following our dedicated politics page for much more.

Click here for the original article by PD i VL native tim on Poslovni Dnevnik

The trend of the Republic of Croatia's foreign debt falling on an annual basis has been going on since the end of 2015, according to RBA analysts in light of their review of the recently published data of the Croatian National Bank (CNB/HNB).

As Poslovni Dnevnik writes on the 5th of February, 2019, at the end of October last year, Croatia's gross foreign debt amounted to 38.4 billion euro, which is less by as much as 4.1 percent when compared to one year before, meaning that the country's foreign debt fell to its lowest level since back in September 2008, according to a new analysis carried out by Raiffeisenbank Austria (RBA).

RBA pointed out, in addition to the fact that the falling of Croatia's foreign debt has been a trend since 2015, that the fall of this debt in October in particular is the result of a decline in the debt(s) of other financial institutions, which fell by 13.1 percent, as it also did in other similar sectors.

Thus, the gross foreign debt of other Croatian (domestic) sectors dropped to 13.5 billion euro at the end of October, or by 5.3 percent year-on-year, continuing the trend of depreciation dating from January 2016, as was stated on Tuesday.

The gross foreign debt of the state amounted to 13.7 billion euro at the end of October, which was 0.4 percent less than it was one year earlier. The growth of Croatia's gross foreign debt at an annual level was recorded only in direct investments, by 4.4 percent, to 6.3 billion euro.

"We expect the data for the last two months of 2018 to point to the continuation of similar developments, and at the end of 2018, the relative indicator of external borrowing should be below 75 percent of GDP," RBA analysts point out.

They expect that this year's debt to gross domestic product (GDP) will decline, thanks to the growth of the domestic economy and further diversification of all of Croatia's key sectors. "Further reductions in debt in the corporate sector are expected as a result of the discrepancies in the cost of financing on domestic and foreign financial markets," analysts from RBA have stated.

However, a tightening monetary policy and worsening funding conditions in regional and global financial markets could warn of a potentially negative impact.

"[This is particularly concerning] in the case of Croatia's modest progress in the implementation of structural reforms, which leads to an increase in risk perception and, consequently, the risk premium of the country itself," concluded RBA's financial analysts.

Make sure to follow our dedicated business and politics pages for more infromation on Croatia's financial situation, doing business in Croatia, and the overall business and investment climate.

As we reported recently, the enfeebled Croatian flag carrier, Croatia Airlines, will undergo privatisation, with the Minister of Maritime Affairs, Transport and Infrastructure, Oleg Butković, having confirmed that the process is ongoing.

As Suzana Varosanec/Poslovni Dnevnik writes on the 3rd of February, 2019, fairly soon, the Croatian Government will decide on the appointment of a required commission to deal with the finding of a strategic partner for the burdened domestic airline.

In response to Poslovni Dnevnik's question on the matter, the response from the competent ministry was that Croatia Airlines has a tender which is currently in its final phase dedicated to finding a financial advisor for the development of the company's needed recapitalisation and the finding of an equally needed strategic partner, but as the initiator of the entire process Croatia Airlines is currently undergoing, it isn't in a position to comment on the details until the end of the procedure.

By the force of a decision made by the Croatian Government back on the 4th of January 2018, Croatia Airlines was returned to the list of companies of strategic and special interest to the Republic of Croatia. On the 26th of April 2018, the Croatian Government adopted the national program of reforms for the year 2018, which suggests ensuring further development and the strengthening of competitive advantages and positions on the air transport market through a quality strategic partnership should be the main goal for Croatia Airlines.

As an indicator of the results, the expansion of the domestic airline's transport network has since been established, as has as the increase in its market share and its recapitalisation.

Back in September 2018, in order to conduct a tender, a limited two-stage procurement procedure was initiated for the "financial advisor service to develop Croatia Airlines' recapitalisation model and finding a strategic partner".

Unofficially speaking, there does appear to be some serious interest for Croatia Airlines, but we're yet to see how that will manifest.

Make sure to stay up to date by following our dedicated business page for much more.

Click here for the original article by Suzana Varosanec for Poslovni Dnevnik

Good news for retail therapy lovers and job seekers alike as both Zagreb and the Istrian city of Poreč are due to get new big shopping centres and a wave of new employment opportunities that go with it.

As Korana Sutlic/Barbara Ban/Novac writes on the 2nd of February, 2019, the current plan for Poreč's up and coming brand new outlet is to have it completed entirely by this summer, it will be located at the entrance to the popular Istrian city. It will be the first such shopping centre in the second largest city in Istria to accommodate shops such as BIPA, C & A, CCC, Deichmann, Galileo, Hervis, Müller, New Yorker, Tedi and Svijet Media.

The investor and owner of the project is the company AM PS Delta Nekretnine d.o.o., which has already built a shopping center in Pula - Pula City Mall. Otherwise, the company AM PS Delta Real Estate Ltd., a member of the Croatian subsidiary of MID Bau Real Estate Ltd., is one of the leading developers on the domestic market, and along with the Pula project, they so far have realised the Garden Mall project in Zagreb, TC Koprivnica, STC Osijek, STC Sisak , STC Valpovo, and STC Umag.

''Works began several months ago, and the completion is scheduled for June this year. Poreč will get its well-deserved shopping and entertainment centre, conceptually conceived as a retail park, and every store will have its own entrance. The retail area of ​​the centre will be around 8,379 square metres in size, which will also make it the largest shopping center in Poreč, and in just a few days the final version of its layout will be known,'' they say from Poreč's city administration upon welcoming this large investment.

Along with the new shopping centre, new jobs will of course come as part of the greater package, which is naturally a more than welcome move for the local economy.

Projects in Zagreb

In addition, this June will see a brand new retail park open at the western part of the Arena Center in Zagreb, on a surface of 8,000 square metres, the content of which will mainly be shops which need large spaces. In the Zagreb district of Špansko, a brand new Z centre will be constructed, which will result in an impressive 60,000 square metre shopping centre, along with stand-alone facilities - McDonald's and Lidl.

The new Zagreb retail centre will boast a square, a multiplex cinema, as well as numerous shops, cafes and restaurants. The completion of Zagreb's Z centre's construction is planned for the end of this year. The completion of the reconstruction of Branimir Centre is also expected this spring.

Make sure to stay up to date by following our dedicated lifestyle and business pages for much more. If it's just Zagreb you're interest in, give Total Zagreb a follow.

Click here for the original article by Korana Sutlic and Barbara Ban for Novac.jutarnji.hr

With the firm support of the Croatian Trade Union, since the 1st of January this year, Konzum increased the salaries of its employees by a net amount of 350 kuna.

As Poslovni Dnevnik writes on the 1st of February, 2019, this wage increase from Konzum refers to employees who are being paid on the basis of coefficiency and will be paid permanently, in addition to their usual monthly salaries, in an amount that is entirely non-taxable, starting with the first such salary from January this year.

"I'm glad to start this year with some good news for our employees. Their satisfaction is high on the list of our priorities, and with this move we want to show them once again how much we appreciate their daily work and efforts to contribute to stable business and good business results,'' stated Slavko Ledić of Konzum's management board.

This income increase is a continuation of Konzum's policy of improving and increasing its workers' rights and benefits. Due to the formerly enfeebled company's successful business results, from the beginning of 2018 to today, salaries have increased by a total of six percent. With the increase of the paid Christmas bonus in the amount of 1,500 kuna per employee, throughout 2018 there were also numerous other benefits which were secured, such as Easter bonuses, a bonus for children, and paid private health insurance.

Despite Agrokor's ups and downs that have continued to rock the Croatian economy over the past couple of years, Konzum has employed more than 1,300 new workers over the past year, mostly in the retail and logistics sectors. All employees are readily offered flexible working hours, a convenience that is of particular interest to parents, students, and henceforth to retirees to whom half-time employment is open, in accordance with the new statutory provisions.

Make sure to stay up to date by following our dedicated business page.

Croatia's flag carrier hasn't had a particularly easy time of it of late. With the desperate search having been on for some time to finally locate a potential strategic partner, Croatia Airlines has been down on its luck and the enfeebled air company, despite having had a good tourist season last summer, is still struggling.

While privatisation isn't always a popular move for companies of such size, it may be the only way forward in some situations. It seems that the fate of Croatia Airlines is now not only heading in that very direction, but that it has already begun, with the process apparently ongoing.

As Poslovni Dnevnik writes on the 1st of February, 2019, after having visited Pelješac Bridge's construction site, on which work on the highly anticipated bridge is progressing faster than previously thought, Minister of Maritime Affairs, Transport and Infrastructure, Oleg Butković, spoke about the fate of Croatia Airlines. He announced that the only national airline company is now ready for privatisation.

Minister Oleg Butković told Dnevnik that when it comes to the road to Croatia Airlines' privatisation, ''the process is ongoing".

"At the next session of the Government, or at the one after that, a decision will be made on the commission [for the privatisation process], which will monitor the entire process of finding a strategic partner [for Croatia Airlines]"

"Croatia Airlines' management has begun the process of selecting a financial advisor, so all of the preparatory actions, more specifically concrete actions are ongoing, and after all these decisions are made then we'll see who is interested. There are interested people who have made themselves known, but I wouldn't say more about any specific names,'' added the minister.

Make sure to stay up to date with Croatia Airlines' ongoing situation and much more by following our dedicated news and business pages.

As Lucija Spiljak/Poslovni Dnevnik writes on the 30th of January, 2019, the Zaprešić bakery Dubravica has been operating since 1961 and is among the six largest in the Croatian bakery industry, with revenues exceeding 120 million kuna.

Given the steady growth in revenue and the demanding bakery product market, they have opted for a business step in the direction of modernisation to strengthen their position and become even more competitive.

Namely, in all Dubravica bakeries, customers can pay using bank cards and even via the Dubravica mobile application (app). When it comes to paying with a bank card, Dubravica will take Mastercard, Maestro and Visa cards, and their mobile application, made with the aim of replacing Dubravica's prepaid and loyalty cards, offers the possibility of paying without having to go to the location itself, reviewing the product selection and seeing if there are any deals on offer, and is available on both Google Play and on the App Store.

This Croatian bakery points out that the application also serves as an integrated map with the help of which users have the opportunity to locate their nearest Dubravica bakery. Maja Raca, Dubravica's retail manager, explained why they introduced these technological options. "Listening to the market and the needs of our customers, introducing card payments and mobile applications was a logical step in business. However, one of the most important reasons for introducing card payments was our desire to simplify the purchasing process for our customers at our locations.''

For a long time, Dubravica has followed the trends in payment transactions both in the Republic of Croatia and on the European market.

"During the period from 2008 to 2015, the number of payment transactions increased from 59 to 78 per person per year. On the other hand, developed western markets have already reached the threshold of 100 POS transactions per person per year. With the development of infrastructure and better acceptance for users, Croatia is expected to follow the trend of non-cash payment. So, we made the decision to introduce new ways of payment. We expect that in about two years, about ten percent of our retail transactions will be non-cash," Raca says.

"We're constantly trying to reflect on the needs of the market, diet trends, and follow the foreign markets. In that way, our customers have accepted salads very well as our new product group which we introduced three years ago, and their loyalty is constantly rewarded with seasonal flavours,'' Raca continued. Dubravica's ingredients are supplied by local producers.

"If circumstances permit, we'll always choose domestic suppliers," Raca noted.

''Over the last ten years, great progress has been made in the industry. Before, people went to the bakery for bread and baked goods, today you can buy freshly prepared sandwiches, pizzas or salads. The choice is really great, and in our rich assortment we have over 100 bakery products, we also sell coffee, dairy products and juices with them. In addition, the transformation and modernisation of the industry is also visible through the interior decoration that follows the highest standards of the world,'' added Raca.

Dubravica is continuing to plan on investing in their retail and network expansion, of which there are currently 35 bakeries, which will lead to very welcome additional employment.

"Regarding product innovation, we will follow the market and strive to meet the customer's changing wishes day by day," concluded Raca.

Make sure to stay up to date by following our dedicated business and lifestyle pages for more.

Click here for the original article by Lucija Spiljak for Poslovni Dnevnik