British looking to buy Croatia Insurance and Croatia Postal Bank

Posted on February 27, 2012

The Croatian government’s recent announcement of major infrastructure projects has been met with interest in diplomatic circles. At the end of March, the British embassy in Zagreb is to organise an “investment forum” in which many investors ready to finance and have ownership interest in the Croatian projects are expected to attend from the United Kingdom.

Natasha Kalauz, director of the Department for Trade and Investment at the British Embassy, said that investors from the City of London were closely following the announcement of the privatisation of state owned companies Croatia Osiguranje (Croatia Insurance) and Croatia Postal Bank (HPB). Some informal contacts have been made and even names of potential British investors in the two companies mentioned. Adris has been linked with Croatia Insurance and for HPB has been mentioned in context with pension funds and The European Bank for Reconstruction and Development.

The government is estimating to receive around two billion kuna (2.7 million Euros) for the sale of these two companies. There has also been further interest in investment with British funds, backed by Asian capital, making their intentions clear to build a rail line from Zagreb to Rijeka.

British investment into Croatia has been conservative in the last 17 years with only 25 million Euros invested. Croatia was the only country in the region in which the UK had a drop in foreign trade by more than 20 per cent last year, reported daily Vecernji list.

Posted in: Balcania