Over the past few years, investors have learnt to take
privatization promises by the Croatian government with a pinch of
salt. Despite the rapid sales this year of Rijecka banka and other
successes, many assets pledged to the market have been yanked from
the selling block or otherwise left in state hands.
This explains the relatively subdued reaction to the late-April
decision by the Croatian parliament to approve a plan to sell an
initial 25% stake in oil and gas group INA Industrija nafte. Valued
at roughly e2 billion ($1.8 billion), INA is the country's largest
firm, and has in the past drawn interest from a variety of regional
players, most notably Austria's OMV and Mol, Hungary's leading oil
and gas company.
Under the privatization concept approved by legislators, the
strategic share...
