Currently released so far... 97115 / 251,287
Articles
Brazil
Sri Lanka
United Kingdom
Sweden
00. Editorial
United States
Latin America
Egypt
Jordan
Yemen
Thailand
Browse latest releases
2010/12/01
2010/12/02
2010/12/03
2010/12/04
2010/12/05
2010/12/06
2010/12/07
2010/12/08
2010/12/09
2010/12/10
2010/12/11
2010/12/12
2010/12/13
2010/12/14
2010/12/15
2010/12/16
2010/12/17
2010/12/18
2010/12/19
2010/12/20
2010/12/21
2010/12/22
2010/12/23
2010/12/25
2010/12/26
2010/12/27
2010/12/28
2010/12/29
2010/12/30
2011/01/01
2011/01/02
2011/01/04
2011/01/05
2011/01/07
2011/01/09
2011/01/11
2011/01/12
2011/01/13
2011/01/14
2011/01/15
2011/01/16
2011/01/17
2011/01/18
2011/01/19
2011/01/20
2011/01/21
2011/01/22
2011/01/23
2011/01/24
2011/01/25
2011/01/26
2011/01/27
2011/01/28
2011/01/29
2011/01/30
2011/01/31
2011/02/01
2011/02/02
2011/02/03
2011/02/04
2011/02/05
2011/02/06
2011/02/07
2011/02/08
2011/02/09
2011/02/10
2011/02/11
2011/02/12
2011/02/13
2011/02/14
2011/02/15
2011/02/16
2011/02/17
2011/02/18
2011/02/19
2011/02/20
2011/02/21
2011/02/22
2011/02/23
2011/02/24
2011/02/25
2011/02/26
2011/02/27
2011/02/28
2011/03/01
2011/03/02
2011/03/03
2011/03/04
2011/03/05
2011/03/06
2011/03/07
2011/03/08
2011/03/09
2011/03/10
2011/03/11
2011/03/13
2011/03/14
2011/03/15
2011/03/16
2011/03/17
2011/03/18
2011/03/19
2011/03/20
2011/03/21
2011/03/22
2011/03/23
2011/03/24
2011/03/25
2011/03/26
2011/03/27
2011/03/28
2011/03/29
2011/03/30
2011/03/31
2011/04/01
2011/04/02
2011/04/03
2011/04/04
2011/04/05
2011/04/06
2011/04/07
2011/04/08
2011/04/09
2011/04/10
2011/04/11
2011/04/12
2011/04/13
2011/04/14
2011/04/15
2011/04/16
2011/04/17
2011/04/18
2011/04/19
2011/04/20
2011/04/21
2011/04/22
2011/04/23
2011/04/24
2011/04/25
2011/04/26
2011/04/27
2011/04/28
2011/04/29
2011/04/30
2011/05/01
2011/05/02
2011/05/03
2011/05/04
2011/05/05
2011/05/06
2011/05/07
2011/05/09
2011/05/10
2011/05/11
2011/05/12
2011/05/13
2011/05/14
2011/05/15
2011/05/16
2011/05/17
2011/05/18
2011/05/19
2011/05/20
2011/05/21
2011/05/22
2011/05/23
2011/05/24
2011/05/25
2011/05/26
2011/05/27
2011/05/28
2011/05/29
2011/05/30
2011/05/31
2011/06/01
2011/06/02
2011/06/03
2011/06/04
2011/06/05
2011/06/06
2011/06/07
2011/06/08
2011/06/09
2011/06/10
2011/06/11
2011/06/12
2011/06/13
2011/06/14
2011/06/15
2011/06/16
2011/06/17
2011/06/18
2011/06/19
2011/06/20
2011/06/21
2011/06/22
2011/06/23
2011/06/24
2011/06/25
2011/06/26
2011/06/27
2011/06/28
2011/06/29
2011/06/30
2011/07/01
2011/07/02
2011/07/04
2011/07/05
2011/07/06
2011/07/07
2011/07/08
2011/07/10
2011/07/11
2011/07/12
2011/07/13
2011/07/14
2011/07/15
2011/07/16
2011/07/17
2011/07/18
2011/07/19
2011/07/20
2011/07/21
2011/07/22
2011/07/23
2011/07/25
2011/07/27
2011/07/28
2011/07/29
2011/07/31
2011/08/01
2011/08/02
2011/08/03
2011/08/05
2011/08/06
2011/08/07
2011/08/08
2011/08/10
2011/08/11
2011/08/12
2011/08/13
2011/08/15
2011/08/16
2011/08/17
2011/08/19
2011/08/21
2011/08/22
2011/08/23
2011/08/24
2011/08/25
Browse by creation date
Browse by origin
Embassy Athens
Embassy Asuncion
Embassy Astana
Embassy Asmara
Embassy Ashgabat
Embassy Apia
Embassy Antananarivo
Embassy Ankara
Embassy Amman
Embassy Algiers
Embassy Addis Ababa
Embassy Accra
Embassy Abuja
Embassy Abu Dhabi
Embassy Abidjan
Consulate Auckland
Consulate Amsterdam
Consulate Alexandria
Consulate Adana
American Institute Taiwan, Taipei
Embasy Bonn
Embassy Bujumbura
Embassy Buenos Aires
Embassy Budapest
Embassy Bucharest
Embassy Brussels
Embassy Bridgetown
Embassy Brazzaville
Embassy Bratislava
Embassy Brasilia
Embassy Bogota
Embassy Bishkek
Embassy Bern
Embassy Berlin
Embassy Belmopan
Embassy Belgrade
Embassy Beirut
Embassy Beijing
Embassy Banjul
Embassy Bangui
Embassy Bangkok
Embassy Bandar Seri Begawan
Embassy Bamako
Embassy Baku
Embassy Baghdad
Consulate Belfast
Consulate Barcelona
Embassy Cotonou
Embassy Copenhagen
Embassy Conakry
Embassy Colombo
Embassy Chisinau
Embassy Caracas
Embassy Canberra
Embassy Cairo
Consulate Curacao
Consulate Ciudad Juarez
Consulate Chiang Mai
Consulate Chennai
Consulate Chengdu
Consulate Casablanca
Consulate Cape Town
Consulate Calgary
Embassy Dushanbe
Embassy Dublin
Embassy Doha
Embassy Djibouti
Embassy Dili
Embassy Dhaka
Embassy Dar Es Salaam
Embassy Damascus
Embassy Dakar
DIR FSINFATC
Consulate Dusseldorf
Consulate Durban
Consulate Dubai
Consulate Dhahran
Embassy Guatemala
Embassy Grenada
Embassy Georgetown
Embassy Gaborone
Consulate Guayaquil
Consulate Guangzhou
Consulate Guadalajara
Embassy Helsinki
Embassy Harare
Embassy Hanoi
Consulate Hong Kong
Consulate Ho Chi Minh City
Consulate Hermosillo
Consulate Hamilton
Consulate Hamburg
Consulate Halifax
Embassy Kyiv
Embassy Kuwait
Embassy Kuala Lumpur
Embassy Kolonia
Embassy Kinshasa
Embassy Kingston
Embassy Kigali
Embassy Khartoum
Embassy Kathmandu
Embassy Kampala
Embassy Kabul
Consulate Krakow
Consulate Kolkata
Consulate Karachi
Consulate Kaduna
Embassy Luxembourg
Embassy Lusaka
Embassy Luanda
Embassy London
Embassy Lome
Embassy Ljubljana
Embassy Lisbon
Embassy Lima
Embassy Lilongwe
Embassy Libreville
Embassy La Paz
Consulate Leipzig
Consulate Lahore
Consulate Lagos
Mission USOSCE
Mission USNATO
Mission UNESCO
Mission Geneva
Embassy Muscat
Embassy Moscow
Embassy Montevideo
Embassy Monrovia
Embassy Mogadishu
Embassy Minsk
Embassy Mexico
Embassy Mbabane
Embassy Maseru
Embassy Maputo
Embassy Manila
Embassy Manama
Embassy Managua
Embassy Malabo
Embassy Madrid
Consulate Munich
Consulate Mumbai
Consulate Montreal
Consulate Monterrey
Consulate Milan
Consulate Merida
Consulate Melbourne
Consulate Matamoros
Consulate Marseille
Embassy Nouakchott
Embassy Nicosia
Embassy Niamey
Embassy New Delhi
Embassy Ndjamena
Embassy Nassau
Embassy Nairobi
Consulate Nuevo Laredo
Consulate Naples
Consulate Naha
Consulate Nagoya
Embassy Pristina
Embassy Pretoria
Embassy Praia
Embassy Prague
Embassy Port Of Spain
Embassy Port Moresby
Embassy Port Louis
Embassy Port Au Prince
Embassy Podgorica
Embassy Phnom Penh
Embassy Paris
Embassy Paramaribo
Embassy Panama
Consulate Ponta Delgada
Consulate Peshawar
REO Mosul
REO Kirkuk
REO Hillah
REO Basrah
Embassy Rome
Embassy Riyadh
Embassy Riga
Embassy Reykjavik
Embassy Rangoon
Embassy Rabat
Consulate Rio De Janeiro
Consulate Recife
Secretary of State
Embassy Suva
Embassy Stockholm
Embassy Sofia
Embassy Skopje
Embassy Singapore
Embassy Seoul
Embassy Sarajevo
Embassy Santo Domingo
Embassy Santiago
Embassy Sanaa
Embassy San Salvador
Embassy San Jose
Consulate Surabaya
Consulate Strasbourg
Consulate St Petersburg
Consulate Shenyang
Consulate Shanghai
Consulate Sapporo
Consulate Sao Paulo
Embassy Tunis
Embassy Tripoli
Embassy Tokyo
Embassy Tirana
Embassy The Hague
Embassy Tel Aviv
Embassy Tehran
Embassy Tegucigalpa
Embassy Tbilisi
Embassy Tashkent
Embassy Tallinn
Consulate Toronto
Consulate Tijuana
Consulate Thessaloniki
USUN New York
USMISSION USTR GENEVA
USEU Brussels
US Office Almaty
US Mission Geneva
US Mission CD Geneva
US Interests Section Havana
US Delegation, Secretary
US Delegation FEST TWO
UNVIE
UN Rome
Embassy Ulaanbaatar
Embassy Vilnius
Embassy Vientiane
Embassy Vienna
Embassy Vatican
Embassy Valletta
Consulate Vladivostok
Consulate Vancouver
Browse by tag
AF
ADANA
ASEC
AFIN
AMGT
AE
AORC
AID
AR
AO
AU
ASEAN
AGOA
AFGHANISTAN
AFFAIRS
AMED
APER
ASECARP
APEC
AEMR
AS
AA
ANET
AFLU
ABLD
AL
ASUP
AJ
APECO
AMER
ABUD
AODE
AM
AFSN
AESC
AND
AG
ALOW
AROC
AVIANFLU
ATRN
ACOA
AEGR
AMGMT
AADP
AFSI
ACABQ
APRM
AZ
AIDS
ASE
AGAO
ADCO
ABDALLAH
ARF
AIDAC
ACOTA
ASCH
AC
ASEG
AGR
ACS
AMCHAMS
AN
AMIA
ASIG
ADPM
ADB
ANARCHISTS
ALOWAR
ARM
AUC
AINF
AINT
AORG
AY
AVIAN
AMEDCASCKFLO
AK
ARSO
ARABBL
ASO
ANTITERRORISM
ARABL
AOWC
AGRICULTURE
ALJAZEERA
AMTC
AFINM
AOCR
ABER
ARR
AFPK
ASSEMBLY
ASSK
AZE
AORCYM
AINR
AGMT
AEC
ACKM
APRC
AIN
ASCC
AFPREL
ASED
APERTH
ASFC
ASECTH
AFSA
AOMS
AORCO
ANTXON
ARC
AFAF
ADIP
AIAG
AFARI
AEMED
AORL
AX
ASECAF
AOPC
ASECAFIN
AFZAL
APCS
AMB
AGUIRRE
AEMRASECCASCKFLOMARRPRELPINRAMGTJMXL
AIT
ARCH
AMEX
ALI
AQ
ATFN
AMBASSADOR
AORCD
AVIATION
ARAS
AINFCY
ACBAQ
AOPR
AREP
ALEXANDER
ATRD
AEIR
AOIC
ABLDG
ASEX
AFR
ASCE
ATRA
ASEK
AER
ALOUNI
AMCT
AVERY
APR
AMAT
AEMRS
ASPA
AFU
AMG
ATPDEA
ALL
AECL
ACAO
ASECKFRDCVISKIRFPHUMSMIGEG
AORD
AFL
AME
ADM
ASECPHUM
AGIT
ABT
ASECVE
AGUILAR
AT
ABMC
ALZUGUREN
ANGEL
ASR
ANTONIO
BMGT
BEXP
BM
BG
BL
BA
BR
BTA
BO
BY
BBSR
BLUE
BK
BF
BTIO
BELLVIEW
BE
BU
BN
BH
BD
BC
BTC
BILAT
BT
BX
BRUSSELS
BP
BB
BRPA
BUSH
BURMA
BMENA
BESP
BIT
BBG
BGD
BMEAID
BAGHDAD
BEN
BIO
BMOT
BWC
BLUNT
BURNS
BUT
BGMT
BAIO
BCW
BOEHNER
BFIF
BOL
BASHAR
BIMSTEC
BOU
BIDEN
BZ
BFIN
BTRA
BI
BHUM
BOIKO
BERARDUCCI
BOUCHAIB
BORDER
BEXPC
BTIU
BTT
BIOS
BEXB
BGPGOV
BOND
BLR
CE
CG
CH
CVR
CASC
CU
CI
CD
CO
CDG
CB
CJAN
CPAS
COM
CVIS
CMGT
CT
CENTCOM
CNARC
CTERR
COUNTER
CHIEF
CDC
CTR
CBW
COUNTRY
CLEARANCE
CY
CA
CM
CS
CWC
CN
CITES
CF
CWG
CIVS
CFIS
CASCC
CROATIA
CONS
COUNTERTERRORISM
CASA
COE
CJ
CHR
CODEL
CR
CBC
CACS
CHERTOFF
CAS
CONTROL
CONDITIONS
CONDOLEEZZA
CITEL
CV
CLINTON
CHG
CZ
CON
CTBT
CEN
CRIMES
COMMERCE
CLOK
CRISTINA
CFED
CARC
CND
CTM
CARICOM
COUNTRYCLEARANCE
CBTH
CHINA
CSW
CICTE
CJUS
CYPRUS
CW
CAMBODIA
CENSUS
CIDA
CRIME
CBG
CBE
CMGMT
CAIO
CEC
CARSON
CPCTC
CEDAW
COMESA
CVIA
CWCM
CEA
COSI
CAPC
CGEN
COPUOS
CGOPRC
COETRD
CKGR
CFE
CQ
CITT
CIC
CARIB
CVIC
CLO
CAFTA
CVISU
CHRISTOPHER
CACM
CIAT
CDB
CIS
CUL
CHAO
CNC
CL
CSEP
COMMAND
CENTER
COL
CAN
CAJC
CUIS
CONSULAR
CLMT
CIA
CBSA
CEUDA
CAC
CROS
CIO
CPUOS
CKOR
CVPR
CONG
CONTROLS
CEPTER
CVISCMGTCASCKOCIASECPHUMSMIGKIRF
CDCE
DPOL
DEMARCHE
DHS
DR
DA
DISENGAGEMENT
DEMOCRATIC
DEFENSE
DJ
DY
DARFUR
DHRF
DEA
DTRO
DPRK
DO
DARFR
DOC
DRL
DK
DOJ
DTRA
DOMESTIC
DAC
DOD
DEAX
DIEZ
DEOC
DELTAVIOLENCE
DCOM
DMINE
DRC
DCG
DPKO
DOMESTICPOLITICS
DE
DB
DOT
DEPT
DOE
DHLAKAMA
DHSX
DS
DKEM
DAO
DCM
DANIEL
DEM
DAVID
DCRM
ETRD
EAGR
ETTC
EAID
ECON
EFIN
ECIN
EINV
ELAB
EAIR
ENRG
EPET
EWWT
ECPS
EIND
EMIN
ELTN
EC
ETMIN
EUC
EZ
ET
ELECTIONS
ENVR
EU
EUN
EG
EINT
ER
ECONOMICS
ES
EMS
ENIV
EEB
EN
ECE
ECOSOC
EK
ENVIRONMENT
EFIS
EI
EWT
ENGRD
ECPSN
EXIM
EIAD
ERIN
ECPC
EDEV
ENGY
ECTRD
EPA
ESTH
ECCT
EINVECON
ENGR
ERTD
EUR
EAP
EWWC
ELTD
EL
EXIMOPIC
EXTERNAL
ETRDEC
ESCAP
ECO
EGAD
ELNT
ECONOMIC
ENV
ETRN
EIAR
EUMEM
ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID
EREL
ECOM
ECONETRDEAGRJA
ETCC
ETRG
ECONOMY
EMED
ETR
ENERG
EITC
EFINOECD
EURM
EENG
ERA
EXPORT
ENRD
ECONEINVETRDEFINELABETRDKTDBPGOVOPIC
EGEN
EBRD
EVIN
ETRAD
ECOWAS
EFTA
ECONETRDBESPAR
EGOVSY
EPIN
EID
ECONENRG
EDRC
ESENV
ETT
EB
ENER
ELTNSNAR
ECHEVARRIA
ETRC
EPIT
EDUC
ESA
EFI
ENRGY
ESCI
EE
EAIDXMXAXBXFFR
EETC
ECIP
EIAID
EIVN
EBEXP
ESTN
EING
EGOV
ETRA
EPETEIND
ELAN
ETRDGK
EAIDRW
ETRDEINVECINPGOVCS
EPEC
ENVI
ELN
EAG
EPCS
EPRT
EPTED
ETRB
EUM
EAIDS
EFIC
EFINECONEAIDUNGAGM
EAIDAR
ESF
EIDN
ELAM
EDU
EV
EAIDAF
ECN
EDA
EXBS
EINTECPS
ENRGTRGYETRDBEXPBTIOSZ
EPREL
EAC
EINVEFIN
ETA
EAGER
EINDIR
ECA
ECLAC
ELAP
EITI
EUCOM
ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID
EARG
ELDIN
EINVKSCA
ENNP
EFINECONCS
EFINTS
ECCP
ETC
EAIRASECCASCID
EINN
ETRP
EAIDNI
EFQ
ECOQKPKO
EGPHUM
EBUD
ECONEINVEFINPGOVIZ
ENERGY
ELB
EINDETRD
EMI
ECONEFIN
EIB
EURN
ETRDEINVTINTCS
EIN
EFIM
ETIO
ELAINE
EMN
EATO
EWTR
EIPR
EINVETC
ETTD
ETDR
EIQ
ECONCS
EPPD
ENRGIZ
EISL
ESPINOSA
ELEC
EAIG
ESLCO
EUREM
ENTG
ERD
EINVECONSENVCSJA
EEPET
EUNCH
ECINECONCS
ETRO
ETRDECONWTOCS
ECUN
EFND
EPECO
EAIRECONRP
ERGR
ETRDPGOV
ECPN
ENRGMO
EPWR
EET
EAIS
EAGRE
EDUARDO
EAGRRP
EAIDPHUMPRELUG
EICN
ECONQH
EVN
EGHG
ELBR
EINF
EAIDHO
EENV
ETEX
ERNG
ED
FR
FREEDOM
FINREF
FJ
FI
FRELIMO
FOREIGN
FAA
FETHI
FAS
FTAA
FRB
FAO
FCS
FINANCE
FWS
FTA
FEMA
FDA
FLU
FRANCISCO
FBI
FORCE
FO
FARC
FK
FT
FCSC
FAC
FM
FMGT
FINV
FCSCEG
FARM
FERNANDO
FINR
FIN
FINE
FIR
FDIC
FOR
FOI
FCUL
FKLU
FMLN
FISO
FIXED
GM
GMUS
GG
GR
GE
GAZA
GT
GH
GZ
GJ
GLOBAL
GV
GABY
GOI
GA
GCC
GB
GY
GATT
GC
GUAM
GEORGE
GTIP
GOV
GOMEZ
GUTIERREZ
GL
GKGIC
GF
GU
GWI
GARCIA
GTMO
GN
GANGS
GIPNC
GAERC
GREGG
GUILLERMO
GASPAR
GERARD
GI
HK
HR
HUMANR
HUMAN
HO
HA
HUMANRIGHTS
HU
HHS
HIV
HUM
HRKAWC
HILLEN
HILLARY
HDP
HUMRIT
HSTC
HUMANITARIAN
HCOPIL
HADLEY
HURI
HL
HRETRD
HOURANI
HG
HARRIET
HESHAM
HI
HNCHR
HARRY
HRECON
HRC
HOSTAGES
HEBRON
HUMOR
HSWG
HYMPSK
HECTOR
HN
HYDE
HUD
HRPGOV
HIGHLIGHTS
ID
ILC
IS
IZ
ICAO
IMO
ITU
IR
IAEA
ICRC
IPROP
IT
IBRD
ISRAELI
IRAQI
ISSUES
ITRA
IV
IO
IGAD
IRAQ
IN
IMF
ICTR
ISCON
IADB
IDB
IEA
INR
IWC
ICCAT
ILO
INMARSAT
IOM
ICJ
IQ
ISPA
ITRD
IPR
INTELSAT
ISN
IAHRC
INTERNAL
IFAD
IICA
IHO
IRAN
IL
IRCE
IC
INTELLECTUAL
IRM
IE
ICTY
IDLI
IFO
ISCA
INF
INL
ISRAEL
INV
IBB
INFLUENZA
ISPL
ITER
ITIA
INRA
ISAF
IACHR
INTERPOL
IFR
IRS
INRB
IEF
ISAAC
ICC
INDO
IIP
IATTC
INAUGURATION
IND
INS
IZPREL
IACI
IEFIN
INNP
ILAB
IA
IMTS
ITALY
ITALIAN
IFIN
IRAJ
IX
ICG
IF
ITPHUM
ITA
IP
IACW
IK
IUCN
IZEAID
IRPE
IDA
ISLAMISTS
ITF
INRO
IBET
IDP
IRC
ISO
ICES
IRMO
ITPGOV
IQNV
IMSO
IRDB
IMET
INCB
IFRC
JA
JO
JP
JM
JCIC
JOHN
JE
JEFFERY
JS
JUS
JN
JOHNNIE
JAMES
JKUS
JOSEPH
JML
JAWAD
JSRP
JIMENEZ
JOSE
JKJUS
JK
JAPAN
KMDR
KPAO
KPKO
KJUS
KCRM
KGHG
KFRD
KWMN
KDEM
KTFN
KHIV
KGIC
KIDE
KSCA
KNNP
KHUM
KIPR
KSUM
KISL
KIRF
KCOR
KRCM
KPAL
KWBG
KN
KS
KOMC
KSEP
KFLU
KPWR
KTIA
KSEO
KMPI
KHLS
KICC
KSTH
KMCA
KVPR
KPRM
KE
KU
KZ
KFLO
KSAF
KTIP
KTEX
KBCT
KOCI
KOLY
KOR
KAWC
KACT
KUNR
KTDB
KSTC
KLIG
KSKN
KNN
KCFE
KCIP
KGHA
KHDP
KPOW
KUNC
KDRL
KV
KPREL
KCRS
KPOL
KRVC
KRIM
KGIT
KWIR
KT
KIRC
KOMO
KRFD
KUWAIT
KG
KFIN
KSCI
KTFIN
KFTN
KGOV
KPRV
KSAC
KGIV
KCRIM
KPIR
KSOC
KBIO
KW
KGLB
KMWN
KPO
KFSC
KSEAO
KSTCPL
KSI
KPRP
KREC
KFPC
KUNH
KCSA
KMRS
KNDP
KR
KICCPUR
KPPAO
KCSY
KTBT
KCIS
KNEP
KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG
KNNB
KGCC
KINR
KPOP
KMFO
KENV
KNAR
KVIR
KDRG
KDMR
KFCE
KNAO
KDEN
KGCN
KICA
KIMMITT
KMCC
KLFU
KMSG
KSEC
KUM
KCUL
KMNP
KSMT
KCOM
KOMCSG
KSPR
KPMI
KRAD
KIND
KCRP
KAUST
KWAWC
KTER
KCHG
KRDP
KPAS
KITA
KTSC
KPAOPREL
KWGB
KIRP
KJUST
KMIG
KLAB
KTFR
KSEI
KSTT
KAPO
KSTS
KLSO
KWNN
KPOA
KHSA
KNPP
KPAONZ
KBTS
KWWW
KY
KJRE
KPAOKMDRKE
KCRCM
KSCS
KWMNCI
KESO
KWUN
KPLS
KIIP
KEDEM
KPAOY
KRIF
KGICKS
KREF
KTRD
KFRDSOCIRO
KTAO
KJU
KWMNPHUMPRELKPAOZW
KEN
KO
KNEI
KEMR
KKIV
KEAI
KWAC
KRCIM
KWCI
KFIU
KWIC
KCORR
KOMS
KNNO
KPAI
KBWG
KTTB
KTBD
KTIALG
KILS
KFEM
KTDM
KESS
KNUC
KPA
KOMCCO
KCEM
KRCS
KWBGSY
KNPPIS
KNNPMNUC
KWN
KERG
KLTN
KALM
KCCP
KSUMPHUM
KREL
KGH
KLIP
KTLA
KAWK
KWMM
KVRP
KVRC
KAID
KSLG
KDEMK
KX
KIF
KNPR
KCFC
KFTFN
KTFM
KPDD
KCERS
KMOC
KDEMAF
KMEPI
KEMS
KDRM
KEPREL
KBTR
KEDU
KNP
KIRL
KNNR
KMPT
KISLPINR
KTPN
KA
KJUSTH
KPIN
KDEV
KTDD
KAKA
KFRP
KWNM
KTSD
KINL
KJUSKUNR
KWWMN
KECF
KWBC
KPRO
KVBL
KOM
KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG
KEDM
KFLD
KLPM
KRGY
KNNF
KICR
KIFR
KM
KWMNCS
KAWS
KLAP
KPAK
KDDG
KCGC
KID
KNSD
KMPF
KPFO
KDP
KCMR
KRMS
KNPT
KNNNP
KTIAPARM
KDTB
KNUP
KPGOV
KNAP
KNNC
KUK
KSRE
KREISLER
KIVP
KQ
KTIAEUN
KPALAOIS
KRM
KISLAO
KWM
KFLOA
LE
LU
LH
LA
LG
LO
LY
LANTERN
LI
LABOR
LORAN
LTTE
LT
LAS
LAB
LAW
LVPR
LARREA
LEBIK
LAURA
LS
LOTT
LOVE
LR
LEON
LAVIN
LGAT
LV
LAOS
LOG
LN
LB
MOPS
MO
MARR
ML
MASS
MZ
MR
MNUC
MX
MV
MCC
MY
MEDIA
MTCRE
MG
MCAP
MOPPS
MP
MI
MK
MC
MD
MA
MU
MASC
MW
MT
MEPP
MN
MTCR
MH
MEPI
MIL
MNUCPTEREZ
MMAR
MICHAEL
MUNC
MDC
MPOS
MONUC
MAR
MGMT
MAS
MEPN
MENDIETA
MARIA
MONTENEGRO
MOOPS
MSG
MARITIME
MURRAY
MUKASEY
MOTO
MCA
MFO
MEX
MRSEC
MMED
MACP
MAAR
MINUSTAH
MCCONNELL
MAPP
MGT
MARQUEZ
MANUEL
MNUR
MCCAIN
MF
MOHAMMAD
MOHAMED
MNU
MFA
MILITANTS
MINORITIES
MTS
MLS
MILI
MIAH
MEETINGS
MERCOSUR
MED
MARAD
MNVC
MINURSO
MNUCUN
MIK
MARK
MBM
MPP
MILITARY
MAPS
MNUK
MILA
MTRRE
MACEDONIA
MICHEL
MASSMNUC
MUCN
MQADHAFI
MPS
MARRGH
MRCRE
MTRE
MORALES
MAP
MCTRE
MHUC
MOPSGRPARM
MOROCCO
MCAPS
NL
NU
NS
NI
NPT
NATO
NO
NG
NATEU
NSF
NZ
NAS
NP
NDP
NLD
NGO
NEPAD
NAFTA
NASA
NEA
NGUYEN
NIH
NK
NIPP
NONE
NR
NANCY
NEGROPONTE
NRR
NERG
NSSP
NSG
NSFO
NE
NATSIOS
NFSO
NATIONAL
NTDB
NT
NCD
NTSB
NRC
NELSON
NAM
NH
NPG
NEC
NSC
NFATC
NMFS
NATOIRAQ
NAR
NZUS
NARC
NCCC
NA
NC
NEW
NRG
NUIN
NOVO
NATOPREL
NEY
NV
NICHOLAS
NPA
NW
NARCOTICS
NORAD
NOAA
NON
NTTC
NKNNP
NMNUC
NUMBERING
ODIP
OIIP
OPRC
OSCE
OREP
OTRA
OPET
OSCI
OVIP
OECD
OCII
OUALI
OPDC
OEXC
OFPD
OPIC
OFDP
OPCW
OECV
OAS
OM
OMIG
ODAG
OPREP
ORA
OIC
OEXCSCULKPAO
OIG
OASS
OFFICIALS
ORTA
OSAC
OIL
OIE
OEXP
OPEC
OPDAT
OMS
OES
OHI
OMAR
OCRA
OFSO
OCBD
OSTA
OAO
ONA
OTP
ORC
OAU
OXEC
OA
ODPC
OPDP
OVIPPRELUNGANU
OASC
OSHA
OPCD
OTR
OPPI
OPCR
OF
OFDPQIS
OSIC
OHUM
OSTRA
OASCC
OBSP
OFDA
OPICEAGR
OIM
OGAC
OTA
OTRAORP
OPPC
OESC
OCEA
OVP
ON
OPAD
OTAR
OCS
ODC
OTRD
OCED
OSD
ORUE
OREG
PHUM
PINR
PTER
PGOV
PREL
PREF
PL
PM
PHSA
PE
PARM
PINS
PK
PUNE
PO
PALESTINIAN
PU
PBTS
PROP
PTBS
POL
POLI
PA
PGOVZI
POLMIL
POLITICAL
PARTIES
POLM
PD
POLITICS
POLICY
PAS
PMIL
PINT
PNAT
PV
PKO
PPOL
PERSONS
PING
PBIO
PH
PETR
PARMS
PRES
PCON
PETERS
PRELBR
PT
PLAB
PP
PAK
PDEM
PKPA
PSOCI
PF
PLO
PTERM
PJUS
PSOE
PELOSI
PROPERTY
PGOVPREL
PARP
PRL
PNIR
PHUMKPAL
PG
PREZ
PGIC
PBOV
PAO
PKK
PROV
PHSAK
PHUMPREL
PROTECTION
PGOVBL
PSI
PRELPK
PGOVENRG
PUM
PRELKPKO
PATTY
PSOC
PRIVATIZATION
PRELSP
PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ
PMIG
PREC
PAIGH
PROG
PSHA
PARK
PETER
POG
PHUS
PPREL
PS
PTERPREL
PRELPGOV
POV
PKPO
PGOVECON
POUS
PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN
PWBG
PMAR
PREM
PAR
PNR
PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO
PARMIR
PGOVGM
PHUH
PARTM
PN
PRE
PTE
PY
POLUN
PPEL
PDOV
PGOVSOCI
PIRF
PGOVPM
PBST
PRELEVU
PGOR
PBTSRU
PRM
PRELKPAOIZ
PGVO
PERL
PGOC
PAGR
PMIN
PHUMR
PVIP
PPD
PGV
PRAM
PINL
PKPAL
PTERE
PGOF
PINO
PHAS
PODC
PRHUM
PHUMA
PREO
PPA
PEPFAR
PGO
PRGOV
PAC
PRESL
PORG
PKFK
PEPR
PRELP
PREFA
PNG
PGOVPHUMKPAO
PRELECON
PINOCHET
PFOR
PGOVLO
PHUMBA
PRELC
PREK
PHUME
PHJM
POLINT
PGOVPZ
PGOVKCRM
PGOVE
PHALANAGE
PARTY
PECON
PEACE
PROCESS
PLN
PRELSW
PAHO
PEDRO
PRELA
PASS
PPAO
PGPV
PNUM
PCUL
PGGV
PSA
PGOVSMIGKCRMKWMNPHUMCVISKFRDCA
PGIV
PRFE
POGOV
PEL
PBT
PAMQ
PINF
PSEPC
POSTS
PHUMPGOV
PVOV
PHSAPREL
PROLIFERATION
PENA
PRELTBIOBA
PIN
PRELL
PGOVPTER
PHAM
PHYTRP
PTEL
PTERPGOV
PHARM
PROTESTS
PRELAF
PKBL
PRELKPAO
PKNP
PARMP
PHUML
PFOV
PERM
PUOS
PRELGOV
PHUMPTER
PARAGRAPH
PERURENA
PBTSEWWT
PCI
PETROL
PINSO
PINSCE
PQL
PEREZ
PBS
RS
REFUGEES
RW
RP
RELFREE
RO
REGIONAL
RIGHTS
REACTION
REPORT
RU
RENAMO
RIGHTSPOLMIL
REFORM
RM
REFUGEE
REL
RELATIONS
ROW
RREL
REGION
RATIFICATION
RBI
RICE
ROOD
RODENAS
RUIZ
RODHAM
ROBERT
RGY
ROY
REUBEN
RELIGIOUS
RUEHZO
RODRIGUEZ
RUEUN
RELAM
RSP
RF
RSO
RCMP
REO
ROSS
RPTS
RENE
REID
RUPREL
RMA
RI
REMON
RPEL
RFE
RFIN
RA
RAFAEL
RAY
RUS
RPREL
ROBERTG
RECIN
RAMONTEIJELO
SNAR
SP
SN
SMIG
SL
SOCI
SU
SG
SF
SENV
SZ
SOE
SCUL
SY
SO
SR
SYR
SE
SA
SW
SIPDIS
SCIENCE
SADC
SI
SCI
SOCIETY
SC
SAARC
STR
SECRETARY
SANC
SSH
ST
SNA
SGWI
SEP
SOCIS
SETTLEMENTS
SPECIALIST
SK
SHUM
START
STET
SCVL
SREF
SCHUL
SCUIL
SYRIA
SECURITY
SPCE
SYAI
SMIL
SOWGC
STEPHEN
SNRV
SKCA
SENSITIVE
SECI
SNAP
SPP
SCUD
SOM
SPECI
SMIGBG
SENC
SCRM
SGNV
SECTOR
SENVEAGREAIDTBIOECONSOCIXR
SENVSXE
SASIAIN
SACU
SENVSPL
SWMN
STEINBERG
SOPN
SOCR
SCOI
SCRS
SILVASANDE
SWE
SARS
SNARIZ
SUDAN
SENVQGR
SM
SNARKTFN
SAAD
SD
SAN
SIPRNET
STATE
SENS
SUBJECT
SFNV
SECSTATE
SSA
SPCVIS
SOI
SOFA
SCULKPAOECONTU
SPTER
SKSAF
SENVKGHG
SHI
SEVN
SANR
SPSTATE
SMITH
SCOM
SH
SNARCS
SNARN
SIPRS
SNARM
SIPDI
SCPR
SNIG
SELAB
SULLIVAN
SENVENV
SECDEF
SOLIC
SOIC
SPAS
SASC
SOSI
SEC
SEN
SENVCASCEAIDID
TU
TH
TW
TSPA
TRGY
TPHY
TBIO
TIFA
TS
TZ
TX
TSPL
TT
TK
TC
TINT
TERFIN
TERRORISM
TIP
TURKEY
TI
TECHNOLOGY
TNGD
TRSY
TRAFFICKING
TOPEC
TPSL
TP
TD
TR
TA
TIO
TREATY
TO
THPY
TECH
TRADE
TPSA
TG
TAGS
TF
TRAD
THKSJA
TVBIO
TNDG
TN
TBIOZK
TWI
TV
TWL
TRT
TWRO
TSRY
TTPGOV
TAUSCHER
TRBY
TRBIO
TL
TPKO
TIA
TGRY
TSPAM
TREL
TNAR
TBI
TFIN
TPHYPA
TWCH
THOMMA
THOMAS
TERROR
TRY
TBID
TPP
TE
THANH
TJ
TBKIO
UNGA
USUN
UN
UG
UNSC
UK
UP
US
UNCTAD
UNVIE
UNHRC
USTR
UNAMA
UNCRIME
UNESCO
UV
UNDP
UNHCR
UNCSD
UNCHR
UZ
USAID
UNEP
UNO
UNPUOS
UY
UNDC
UNCITRAL
UNAUS
UNCND
UA
UNMIK
USTDA
USEU
USDA
UNICEF
UR
UNFICYP
USNC
USTRRP
UNODC
UNRWA
UNOMIG
USTRPS
USAU
USCC
UNEF
UNGAPL
UNFPA
UNSCE
USSC
UGA
UEU
UNMIC
UNTAC
UNION
UNCLASSIFIED
USPS
UNA
UMIK
USOAS
UNMOVIC
UNFA
UNAIDS
UNCHC
USGS
UNSE
UNRCR
UNTERR
USG
UE
UAE
UNWRA
UNCSW
UNSCR
UNCHS
UNDESCO
UNPAR
UNC
UB
UNSCS
UKXG
UNGACG
UNREST
UNHR
USPTO
UNFCYP
USCG
UNIDROIT
UNSCD
UPU
UNBRO
UNECE
USTRUWR
UNCC
UNESCOSCULPRELPHUMKPALCUIRXFVEKV
VM
VE
VT
VETTING
VN
VZ
VIS
VC
VTPREL
VIP
VTEAID
VTEG
VOA
VA
VTIZ
VANG
VISIT
VO
VENZ
VAT
VI
VEPREL
VEN
WFP
WTO
WHO
WTRO
WBG
WMO
WIPO
WA
WI
WSIS
WHA
WCL
WE
WMN
WEBZ
WS
WAR
WZ
WMD
WW
WILLIAM
WEET
WAEMU
WM
WWBG
WWT
WWARD
WITH
WMDT
WTRQ
WCO
WEU
WALTER
WRTO
WB
WHTI
WBEG
WCI
WEF
WAKI
WHOA
WGC
Browse by classification
Community resources
courage is contagious
Viewing cable 07ZAGREB46, CROATIA 2007 INVESTMENT CLIMATE STATEMENT
If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs
Understanding cables
Every cable message consists of three parts:
- The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
- The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
- The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07ZAGREB46.
| Reference ID | Created | Released | Classification | Origin |
|---|---|---|---|---|
| 07ZAGREB46 | 2007-01-17 15:40 | 2011-08-25 00:00 | UNCLASSIFIED | Embassy Zagreb |
VZCZCXRO0348
RR RUEHAG RUEHAST RUEHDA RUEHDBU RUEHDF RUEHFL RUEHIK RUEHKW RUEHLA
RUEHLN RUEHLZ RUEHROV RUEHSR RUEHVK RUEHYG
DE RUEHVB #0046/01 0171540
ZNR UUUUU ZZH
R 171540Z JAN 07
FM AMEMBASSY ZAGREB
TO RUEHC/SECSTATE WASHDC 7136
INFO RUCPDOC/USDOC WASHDC
RUEATRS/DEPT OF TREASURY WASHDC
RUCPCIM/CIMS NTDB WASHDC
RUEHZL/EUROPEAN POLITICAL COLLECTIVE
UNCLAS SECTION 01 OF 14 ZAGREB 000046
SIPDIS
SIPDIS
STATE PLEASE PASS TO EB/IFD/OIA
USTR
E.O. 12958: N/A
TAGS: EINV EFIN ETRD ELAB KTDB PGOV OPIC
KTDB, USTR, HR
SUBJECT: CROATIA 2007 INVESTMENT CLIMATE STATEMENT
REF: 06 STATE 178303
¶1. Summary: Croatia has enjoyed respectable
economic growth over the last few years, accompanied
by low inflation, a stable exchange rate and growth
in the tourism sector. At the same time, the
government has undertaken several initiatives aimed
at streamlining the bureaucracy in an effort to
attract and facilitate foreign investment. Although
many challenges still remain, particularly in the
legal system, land registries and distorting
subsidies to state-owned industries, Croatia has
made significant strides in recent years with
foreign investors enjoying solid returns in this
growing market. Now a candidate for membership in
the European Union, Croatia hopes to position itself
as a gateway to the markets of South Eastern Europe,
capitalizing on its developed infrastructure and
favorable geographic position. With the bulk of the
countryQs USD 12 billion in foreign investment since
1991 in the financial and retail sectors, the
governmentQs greatest challenge is to attract
greenfield investments, particularly export-oriented
industries that could help narrow the countryQs
substantial trade deficit. END SUMMARY
A.1 Openness to Foreign Investment
¶2. Croatia is open to foreign investment. The
Croatian government has set a goal of increasing
foreign investment and continues to undertake
measures to improve the investment climate in the
country, hoping to build on recent positive trends
that include a stable macroeconomic environment and
future EU membership. The GoC passed a National
Development Strategy that includes plans for
economic reform. In 2006, the GoC, with the
assistance of USAID, began the Hitro.rez project,
which has as its goal the elimination of thousands
of laws and regulations that affect business in
Croatia. Its managers hope to eliminate 30-50% of
existing provisions and simplify another 30-40%.
The goal of the project is remove needlessly complex
bureaucracy as an obstacle to investment.
¶3. Despite recent progress, however, Croatia still
poses challenges for foreign investors. Of these,
the greatest is the countryQs dysfunctional legal
system. Although being reformed, the wheels of
justice turn slowly in Croatia, with even the
simplest cases taking years to resolve among a
backlog of over 1 million pending cases. Although
there are laws that govern the sanctity of
contracts, the current backlog of cases precludes
effective enforcement. The impossibility of
obtaining timely judicial remedy in a dispute has
hindered investment in Croatia.
¶4. The GovernmentQs e-government initiative ?HITRO?
(www.hitro.hr) became operational in 2005, with an
on-line business registration component that reduces
the time it takes to register a company to four
days. Business registration is the first step in a
plan to make more government services available on-
line in coming years and includes the full
digitization of CroatiaQs broken system of land
records (see www.pravosudje.hr and www.kataster.hr
to find digitized land records).
¶5. The Agency for Trade and Investment Promotion
was given new leadership in 2006. The Agency has a
mandate to assist potential investors in Croatia,
with specialists available in strategic planning,
investment support and export support (see
www.apiu.hr) and is actively seeking projects that
it can promote to foreign investors. The Agency is
also active in advising the government on how to
make CroatiaQs regulatory environment more
transparent and competitive.
¶6. CroatiaQs legal framework accords national
treatment to foreign and domestic investors. The
Internet website of the Croatian Chamber of Economy
(www.hgk.hr) provides a useful English-language
guide, "How to Start Up an Enterprise in Croatia,"
ZAGREB 00000046 002 OF 014
as well as sector-specific and general reports. The
Zagreb Stock Exchange's website (www.zse.hr) posts
English-language translations of key laws in force.
¶7. The Company Act defines the forms of legal
organization for domestic and foreign investors.
The following are permitted for foreigners: general
partnerships, limited partnerships, branches,
limited liability companies, and joint stock
companies. The Law on Ownership and Other Property
Rights permits acquisition/ownership by foreigners
with the approval of the Ministry of Justice and on
the basis of reciprocity (reciprocity exists with
the United States). However, a foreign investor,
incorporated as a Croatian legal entity, may
acquire/own property without ministry approval.
Purchasing by any private party of certain types of
land (principally land directly adjacent to the sea
or in certain geographically designated areas) can
be restricted.
¶8. In privatization, especially of tourism assets
along the coast, local governments have occasionally
voiced opposition to foreign investment and thrown
up barriers to block or limit development,
particularly through the non-issuance of
construction and use permits.
A.2 Conversion and Transfer Policies
¶9. The Croatian constitution guarantees the free
transfer and repatriation of profits and invested
capital for foreign investments. Article VI of the
U.S. Croatia Bilateral Investment Treaty (BIT)
establishes protection for American investors from
government exchange controls that limit current and
capital account transfers, and limits on inward
transfers made by screening authorities. The BIT
obliges both countries to permit all transfers
relating to a covered investment to be made freely
and without delay into and out of each other's
territory. The Croatian Foreign Exchange Law
permits foreigners to maintain foreign currency
accounts and to make external payments.
¶10. The Foreign Exchange Law also defines foreign
direct investment (FDI). For example, use of
retained earnings for new investments/acquisitions
is considered FDI, whereas investments made by
institutional investors such as insurance, pension
and investment funds are not considered FDI. The
law also liberalizes foreign exchange transactions
for Croatian entities and individuals allowing them
to invest abroad. Generally, this law liberalized
foreign exchange transactions, but it also
introduced criteria for the possible imposition of
capital controls. The full potential impact of this
law and its consistency with investment protection
treaties, including the U.S. BIT, is undetermined,
and prospective investors should review the
legislation carefully.
¶11. The U.S. Embassy in Zagreb has not received any
complaints from American companies regarding
transfers and remittances.
A.3 Expropriation and Compensation
¶12. There have been no cases of expropriation of
foreign investments by the government since Croatia
became independent. Article III of the BIT covers
both direct and indirect expropriations. The BIT
bars all expropriations or nationalizations except
those that are for a public purpose, carried out in
a non-discriminatory manner, are in accordance with
due process of law, and are subject to prompt,
adequate and effective compensation.
¶13. Croatian law gives the government broad
authority to expropriate property under various
economic and security related circumstances. The
law provides for an appellate mechanism to challenge
expropriation decisions by means of a complaint to
the Ministry of Justice within 15 days of the
ZAGREB 00000046 003 OF 014
expropriation order. The law, however, does not
describe the Ministry's adjudication process and the
fact that the Ministry of Justice represents the
government, which initiates expropriations, is an
area of potential concern for investors.
A.4 Dispute Settlement
¶14. Partly because of the low level of U.S.
investment in recent years (aside from portfolio
investment), there have been few instances of
investment disputes involving U.S. companies. As a
result of the very long timeframes involved in
obtaining judgments in court, it is likely that
companies try to resolve disputes informally, often
attempting to use political or personal connections.
The government is currently working to reduce court
backlogs and to encourage the use of alternative
dispute settlement.
¶15. The government continues efforts to reform the
judiciary, including reducing the backlog of cases,
reforming the land registry, training court officers
and reducing the backlog and length of bankruptcy
procedures. An important move to lessen the backlog
of cases is the on-going redistribution of non-
disputed decisions to public notaries. During the
past year, the number of pending cases has decreased
from 1.64 million to 1.23 million cases. However,
the enforcement of judgments still makes up 25% of
all pending cases. Although there has been progress
in reducing the number of cases, enforcement and
execution of judgments remain problematic. According
to the provisions of the Law on Enforcement, a
judgment made by a judge or panel of judges to order
payment or direct actions to be taken or ceased must
be executed immediately per such decision. Current
practice, however, delays enforcement until all
appeals are decided. Article 17 of the Law on
Enforcement states that foreign judgments may be
executed only if the "judgment fulfills the
conditions for recognition and execution as
prescribed by an international agreement or the
law." The Ministry of JusticeQs reform plan is
available on its website under ?e-pravosude? at
www.pravosudje.hr.
¶16. The Law on Bankruptcy establishes deadlines
that force companies to enter bankruptcy
proceedings. Bankruptcy and foreclosures have
traditionally been slow and inefficient in Croatia.
The Ministry of Justice announced in 2005 that
streamlining bankruptcy procedures is a priority.
The World Bank has estimated that the recovery rate
in Croatia is approximately a third of the
Organization for Economic Cooperation and
Development (OECD) average, and somewhat worse than
the regional average.
¶17. The Commercial Court has exclusive jurisdiction
over bankruptcy matters. A bankruptcy tribunal
decides on initiating formal bankruptcy proceedings,
appoints the trustee, reviews creditor complaints,
approves the settlement for creditors, and decides
on the closing of proceedings. The bankruptcy judge
supervises the trustee (who represents the debtor)
and the operations of the creditors' committee. A
creditors' committee is convened to protect the
interests of all creditors during the proceedings,
to oversee the trustee's work and to report back to
the creditors. The law establishes the priority of
creditor claims, assigning higher priority to those
related to taxes and revenues of state, local and
administration budgets. The law also allows for a
debtor or the trustee to petition to reorganize the
firm, an alternative aimed at maximizing asset
recovery and providing for fair and equitable
distribution among all creditors.
¶18. Arbitration is available, if underused. Within
the Croatian Chamber of Economy, there is a
permanent arbitration court that has been in
existence since 1965. Arbitration is voluntary and
conforms to United Nations Commission on
International Trade Law (UNCITRAL) model procedures.
ZAGREB 00000046 004 OF 014
The court reviews 30 to 40 cases per year, of which
40% are international cases. There have been five
cases of a U.S. company submitting to arbitration in
this venue.
¶19. The English-language text of the Law on
Arbitration can be found on the website of the
Croatian Chamber of Economy (www.hgk.hr). The law
covers domestic arbitration, recognition and
enforcement of arbitration rulings, jurisdictional
matters, and procedures. Once a dispute has been
arbitrated the decision is executed upon notice from
the court to the obligatory party. If no payment is
made by the established deadline, then the party
benefiting from the decision notifies the commercial
court and the commercial court becomes responsible
for enforcing compliance. Rulings of the
arbitration court have the force of a final
judgment, but can be appealed within three months.
¶20. Article X of the BIT sets forth several means
for resolution of investment disputes, defined as
any dispute arising out of or relating to an
investment authorization, an investment agreement,
or an alleged breach of rights conferred, created,
or recognized by the BIT with respect to a covered
investment. For more information on the BIT
arbitration provisions, see www.mac.doc.gov/Tcc/e-
guides/eg_bits (under "Croatia").
¶21. Croatia is a signatory to the following
international conventions regulating the mutual
acceptance and enforcement of foreign arbitration:
the 1923 Geneva Protocol on Arbitration Clauses, the
1927 Geneva Convention on the Execution of Foreign
Arbitration Decisions, the 1958 New York Convention
on the Acceptance and Execution of Foreign
Arbitration Decisions, and the 1961 European
Convention on International Business Arbitration.
In 1998 Croatia ratified the Washington Convention -
the International Center for the Settlement of
Investment Disputes (ICSID), and it became effective
on October 22, 1998.
¶22. The Croatian constitution provides for an
independent judiciary. The judicial system consists
of courts of general and specialized jurisdictions,
whose core structure is: Supreme Court, County
Courts, Municipal Courts, and the Magistrate/Petty
Crimes Courts. Specialized courts include the
Administrative Court and High Commercial and Lower
Commercial Courts. There is also a Constitutional
Court that determines the constitutionality of laws
and government actions and protects and enforces
constitutional rights. Municipal courts exercise
original jurisdiction over civil and
juvenile/criminal cases. The High Commercial Court
is located in Zagreb and has appellate review of
lower commercial court decisions. Modification of
lower court decisions by the High Commercial Court
may be appealed to the Supreme Court.
¶23. The Administrative Court has jurisdiction over
the decisions of administrative bodies of all levels
of government. The Supreme Court, under certain
circumstances, may review decisions. The Supreme
Court is the highest court in the country and as
such enjoys jurisdiction over all civil and criminal
cases. It hears appeals from County, High
Commercial, and Administrative Courts.
A.5 Performance Requirements/Incentives
¶24. Croatian law does not impose performance
requirements on foreign or domestic investors.
Article VII of the BIT prohibits mandating or
enforcing specified performance requirements as a
condition for the establishment, acquisition,
expansion, management, conduct, or operation of a
covered investment. The list of prohibited
requirements is exhaustive and covers domestic
content requirements and domestic purchase
preferences, the "balancing" of imports or sales in
relation to exports or foreign exchange earnings,
requirements to export products or services,
ZAGREB 00000046 005 OF 014
technology transfer requirements, and requirements
relating to the conduct of research and development
in the host country. Article VII makes clear,
however, that a party may impose conditions for the
receipt or continued receipt of benefits and
incentives.
¶25. In late 2004, the Ministries of Economy and
Defense agreed to introduce offsets (a requirement
for local sourcing of a portion of the contract) for
defense procurements over 2 million euros, and the
Ministry of Economy said it was looking at
introducing offsets in other areas, however no such
action has been undertaken.
¶26. As of January 1, 2007, the Investment
Promotion Law offers potentially significant
incentives (the amount of which is dependent upon
the percentage of unemployment in the respective
county) to investors, foreign and domestic, such as
1500-3000 EUR incentive per new job position,
assistance with retraining and tax incentives. It
provides for incentives that apply only to
investments in production based businesses,
technological development centers and strategic
business support activities. The minimum amount of
investment that qualifies for incentives is 300,000
EUR. Tax incentives include substantially lower
profit tax obligations and customs relief. The text
of the law is available on the Croatian National
Bank site (www.hnb.hr).
¶27. Incentives include: 10% corporate tax for ten
years for companies that invest from 2.2 million to
11 million HRK (approximately $393,000 - $2 million)
and create 10 new jobs; 7% corporate tax for ten
years for companies that invest from 11 million to
30 million HRK (approximately $2 million to $5.35
million) and create 30 new jobs; 3% corporate tax
for ten years for companies that invest 30 million
to 58 million HRK (approximately $2 million to
$10.4 million) and create 50 new jobs; 0% corporate
tax for ten years for companies that invest over 60
million HRK (approximately $10.7 million) and create
at least 75 new jobs.
¶28. Incentive measures refer to investment in the
following: new equipment and modern technology, new
production processes and new products, greater
employment and education of workers, modernization
and growth of business, development of production
with a higher level processing, an increase in
exports, increasing economic activity in regions of
Croatia in which economic growth and employment
levels lag behind national averages (in accordance
with the map of regional areas of special state
concern), development of new services, energy
conservation, strengthening information technology,
cooperation with foreign financial institutions, and
harmonizing the Croatian economy with EU standards.
¶29. Investors may also be eligible to receive
assistance from the government to offset costs of
employee re-training. The government may offer real
estate (or permits or infrastructure) to an
investment either cost-free or on a preferential
basis. Finally, the government will allow the duty-
free importation of capital equipment for the
investment.
¶30. The Croatian government also offers concessions
for business activity carried out in "areas of
special state concern" (those areas most affected by
the 1991-95 war). Activities in customs free zones
are taxed at a lower corporate tax rate and
concessions are awarded under the current Law on
Free Zones. Also, for a period of ten years from
when the Profit Tax Act was enacted in October 2003,
no profit tax will be paid for business operations
in those FTZs located in the Vukovar and Srijem
Counties. However, although still in effect, some
of these incentives are not in compliance with EU
standards. The Government is currently studying how
to bring them into compliance without reneging on
previously-made commitments. A decision on this is
likely in 2007.
ZAGREB 00000046 006 OF 014
¶31. The Trade and Investment Promotion Agency can
be helpful in identifying and applying for
investment incentives. Also, the (separate) Office
of Investment and Export Promotion in the Ministry
of Economy can be helpful in looking for incentive
information. Further information can be found on
their website at www.mingorp.hr.
¶32. CroatiaQs WTO Trade Related Investment Measures
(TRIMs) agreement went into effect in 2000. Croatia
has no trade-related investment measures in place at
the present time, nor does the government intend to
introduce any such measures in the future.
Accordingly, Croatia did not seek to list any
measures for elimination under the provisions of the
WTO Agreement on TRIMs. Croatia committed to
maintaining measures consistent with the TRIMs
agreement and has applied the TRIMs agreement from
the date of accession without recourse to any
transition period.
¶33. Foreign investors will find that the process of
obtaining business visas is straightforward. For
information on obtaining business and work permits,
please contact a Croatian embassy or consulate or
visit Embassy Zagreb's website (www.usembassy.hr,
see Consular Section, American Citizen Services).
A.6 The Right to Private Ownership and
Establishment
¶34. Both foreign and domestic legal entities have
the right to establish and own businesses and engage
in remunerative activity. Foreign investors can
acquire ownership and shares of joint stock
companies. The lowest amount of initial capital for
establishing a joint stock company is 200,000 HRK
($36,300) and the nominal value per share cannot be
less than 10 HRK ($1.78). Minimum initial capital
for establishment of a limited liabilities company
is 20,000 HRk ($3.571), while individual
representation per investor cannot be less than 200
HRK ($35.71)
¶35. Article 49 of the Constitution provides
assurances that all entrepreneurs have equal legal
status and that monopolies are forbidden. The
Competition Act defines the rules and methods for
promoting and protecting competition. This law, and
information about the Croatian Competition Agency
can be found at www.aztn.hr. In theory, competitive
equality is the standard applied to private
enterprises in competition with public enterprises
with respect to market access, credit and other
business operations, such as licenses and supplies.
In practice, however, state-owned enterprises and
"strategic" firms continue to receive preferential
treatment, including government bailouts and
subsidies.
A.7 Protection of Property Rights
¶36. The right to ownership of private property is
established in the Croatian Constitution and
numerous acts and regulations safeguard this right.
A foreign physical or legal person incorporated
under Croatian law is considered to be a Croatian
legal person. The Law on Ownership and Property
Rights establishes procedures for foreigners to
acquire property by inheritance as well as legal
transactions such as purchases, deeds, and trusts.
The right of foreigners to acquire property in
Croatia is based on reciprocity. The U.S. and
Croatia share reciprocity in this area. Foreign
investors, incorporated as a Croatian legal entity,
may acquire and own property without restriction.
Both Croatian and foreign citizens may mortgage
property and pledge real and tangible property.
¶37. In order to acquire property by means other
than inheritance or as an incorporated Croatian
legal entity, foreign investors require the approval
of the Ministry of Justice. Approval often takes
ZAGREB 00000046 007 OF 014
several months or longer owing to a lengthy
interagency clearance process that requires advisory
opinions from local authorities. All requests that
were awaiting Ministry of Foreign Affairs approval
were transferred to the Ministry of Justice as of
July 25, 2006 when the Ministry of Foreign Affairs
was removed from the approval process.
¶38. Clarifying Croatia's land registry system is an
on-going process and while Croatia has made progress
resolving a backlog of cases, potential investors
should seek a full explanation of land ownership
rights before purchasing property. It is highly
advisable to seek competent, independent legal
advice in this area (see www.usembassy.hr, Consular
section for a list of English-speaking attorneys),
as there are sometimes ambiguous and conflicting
claims to property, making it necessary to verify
that the seller possesses clear title to both land
and buildings, which can be titled and owned
separately. Inheritance laws have led to a
situation in which some properties can have dozens
of legal owners, some of whom are long since
deceased and others of whom emigrated and cannot be
found. It is also important to verify the existence
of necessary building permits, as some newer
structures in coastal areas have been subject to
destruction at ownerQs expense and without
compensation for not conforming with local zoning
regulations. Investors should be particularly wary
of promises that structures built without permits
will be regularized retroactively.
¶39. Some aspects of land ownership, as distinct
from ownership of objects, are not clear. Investors
interested in acquiring companies from the Croatian
Privatization Fund should seek expert legal advice
to determine whether any deal also includes the
right to ownership of the land on which an object is
located, or merely the right to lease the land
through a concession. The various Croatian laws on
privatization are not clear on this point.
¶40. Inconsistent regulations and restrictions on
coastal property ownership and construction have in
the past provided challenges for foreign investors.
Legislation passed in 2004 restricts coastal
construction and commercial use within 70 meters of
the coastline.
¶41. Croatia has intellectual property rights
legislation, including the Patent Law, Trademark
Law, Industrial Design Law, Law on the Geographical
Indications of Products and Services, Law on the
Protection of Layout Design of Integrated Circuits,
and Law on Copyrights and Related Rights. Croatia
is on the U.S. Special 301 Watch List for failing to
protect U.S. intellectual property rights. The
Agency for Medical Products, which is separate from
the Patent Agency, does not require license seekers
to submit information on existing patents, which has
resulted in the past in marketing authorization
being given to products that are protected by valid
Croatian patents. Problems also exist in the
protection of trademarks and copyrights, but at a
much lower level.
¶42. As a full WTO member, Croatia is a party to the
Uruguay Round Agreement on Trade-Related
Intellectual Property Rights (TRIPS). A WTO/TRIPS
Working Group in June 2001 accepted Croatia's IPR
legislation. Texts of these laws are available on
the website of the State Intellectual Property
Office: www.dziv.hr. Croatia is also a member of
the World Intellectual Property Organization (WIPO).
For a list of international conventions to which
Croatia is a signatory, consult the State
Intellectual Property Office's website.
A.8 Transparency of the Regulatory System
¶43. Together with CroatiaQs ineffective legal
system, a lack of transparency in both business and
government has presented one of the greatest
challenges to investors. Croatia is under pressure
ZAGREB 00000046 008 OF 014
to increase transparency and its commitments to
adopt EU laws, norms, and practices, provide steady
pressure for reform. However, much more progress is
needed on this front.
¶44. Bureaucracy is also a major challenge for
foreign investors, although the government has made
progress in this area, particularly through the
development of its e-government initiatives (see
paragraph 2). Property registration, for example,
has traditionally been notoriously inefficient,
sometimes taking up to several years. However,
recent reforms and the digitization of the land
registers are hopeful signs that this problem will
be mitigated in the near future (see paragraph 4).
A valuable source of analysis is located on the
website of the Croatian office of the World Bank, at
www.worldbank.hr. Click on the link for the "Doing
Business in Croatia Forum.?
¶45. The regulatory system does not specifically
discriminate against foreign investors. However,
transparency in developing legislation and
regulation is often hampered by an inefficient
public administration, a lack of intra-governmental
coordination, and reliance on expert advice from
national champions, sometimes giving the latter a
privileged position in influencing new regulations.
¶46. Tax on corporate income is a flat 20%. There
is a 15% tax on interest revenue and royalties. In
2005, tax on dividends was eliminated as a spur to
investment. For a detailed description of extant
tax legislation, please consult the Tax
Administration's website at www.pu.mfin.hr/en.
Detailed information about customs can be found at
www.carina.hr.
¶47. The Institute of Public Finance maintains a
useful table of Croatian taxes at
http://www.ijf.hr/eng/taxguide/08_05/taxtable .pdf,
and the Ministry of Finance maintains information at
www.pu.mfin.hr/en. Croatia also maintains a 22
percent value-added tax (VAT). Some companies have
had difficulty with the tax authorities due to
differing understandings of how certain goods and
services are affected by the VAT.
A.9 Efficient Capital Markets and Portfolio
Investments
¶48. CroatiaQs capital markets grew strongly in
2006, fueled by the sale of the GovernmentQs stakes
in Pliva Pharmaceuticals and the national oil
company, INA. Typically, Croatian firms have used
more debt and less equity financing than comparable
U.S. firms.
¶49. In 2006, the amended Investment Fund Law went
into force, which provides for the establishment of
derivative funds, index funds and other funds in
accordance with EU legislation.
¶50. On January 1, 2006, CROSEC (Croatian Securities
and Exchange Commission) HAGENA (the Pension
Insurance and Fund Supervising Agency), and the
Directorate for Supervision of Insurance Agencies
merged into one agency called the Agency for
Supervision of Financial Services ( HANFA), headed
by the Directorate for Supervision of Agencies. See
www.hanfa.hr for all legislation and information
relative to capital markets.
¶51. The privatized and consolidated banking sector
is advanced and is becoming more competitive. More
than 90% of the total assets of the banking sector
are foreign owned. By the end of September 2006,
there were 34 commercial banks and five savings
banks, whose assets totaled 285 billion HRK ($51
billion). Italian-owned Zagrebacka Bank (23.11%)
and Privredna Bank (17.93%) are the two largest
banks per percentage of total bank assets in
Croatia.
¶52. Croatia's markets are open to both domestic and
ZAGREB 00000046 009 OF 014
foreign investment equally. There are no
restrictions that would disrupt foreign investment
in the securities market and other markets in
Croatia. Foreign residents may open non-resident
accounts and may do business both domestically and
abroad. Article 24 of the Foreign Currency act
states that non-residents may subscribe, pay in,
purchase or sell securities in the Republic of
Croatia in accordance with regulations governing
securities transactions. Non-residents and
residents are afforded the same treatment in
spending and borrowing. These and other non-
resident financial activities regarding securities
are covered by Articles 24, 25 and 27 of the Foreign
Currency Act, which can be viewed on the Central
Bank website (www.hnb.hr).
¶53. The government uses the market to finance
government expenditure. Government debt instruments
must be bought through an intermediary such as a
commercial bank, and are tradable on exchanges.
¶54. Currently, securities are traded on the Zagreb
Stock Exchange (ZSE), established in 1991, and to a
lesser extent on the Varazdin Stock Exchange (VSE),
which was established in 1993 as an over-the-counter
(OTC) market and registered as a Stock Exchange on
July 16, 2002.
¶55. The Securities Law requires that all companies
with more than 100 shareholders and with share
capital of at least HRK 30 million (approximately
$5.4 million) list on the newly established
quotation for public stock companies (JDD) on one of
the two stock exchanges in-country, Zagreb or
Varazdin. The intention was to increase
transparency and encourage companies to obtain low
cost equity financing, which would result in
increased turnover and trade volumes.
¶56. All Croatian workers under age 40 are required
to pay five percent of their gross salary into a
pension fund of their choice. EU Pillar III
(additional voluntary savings with government
matching of 25%) has also been introduced. Croatian
financial markets are benefiting from this infusion
of capital.
¶57. Transactions on the Zagreb Stock Exchange in
2005 were 34.2 billion HRK (approximately $6.1
billion), of which 25 billion HRK (approximately
$4.5 billion) was in institutional turnover. As of
December 2006, transactions totaled 45.3 billion HRK
(approximately $8.1 billion) of which 29.4 billion
HRK (approximately $5.3 billion) was institutional
turnover. In 2005, transactions on the Varazdin
Stock Exchange totaled 2.2 billion HRK
(approximately $390 million) andin 2006transactions
totaled 3.7 billion HRK (approximately $660
million).
¶58. There are three tiers of securities traded on
the ZSE. Companies must meet high disclosure and
operating requirements to be fully listed (quotation
I). A detailed explanation of all requirements is
provided at www.zse.hr in English.
¶59. The Croatian Chamber of Economy provides a
useful summary of the capital markets in Croatia at:
www.hgk.hr.
A.10 Political Violence
¶60. Political violence is low in Croatia. In late
1995, the conclusion of the Erdut Agreement and the
Dayton Peace Accords ended the wars on Croatian
territory that followed the break-up of Yugoslavia.
In May 2002, Croatia was accepted into NATO's
Membership Action Plan, underscoring the improved
relationship between Croatia and the international
community. Full NATO membership for Croatia is
likely before the end of the decade. In October
2005, the European Union began accession
negotiations with Croatia in order to prepare
Croatia for membership. Relations with neighbors
ZAGREB 00000046 010 OF 014
have improved steadily in the last few years, and
minority parties are represented in the current
ruling coalition.
¶61. There is little domestic anti-American
sentiment. There have been no incidents involving
politically motivated damage to American projects
and/or installations in Croatia.
A.11.a Corruption
¶62. Although Croatia is not a uniquely corrupt
country, corruption is still a problem and is
perceived to be widespread. In the 2006 Corruption
Perception Index survey compiled by Transparency
International (TI), an international watchdog
organization for corruption, Croatia received an
index score of 3.4 out of 10 (ten being "highly
clean"), remaining unchanged from 2005.
¶63. In March 2006, the government presented its
National Strategy for Battling Corruption and
Organized Crime (Strategy) that proposed to overhaul
the judicial system, health system, local
government, political party financing, public
administration, and the economy. Most observers
consider that corruption is a problem of opportunity
and that continued reforms of the bureaucracy and
judiciary, combined with pressure from the
international business community and the EU will
result in greater transparency and accountability.
While Croatia has undertaken the guidelines set by
the Strategy, the European Commission, in its
"Croatia 2006 Progress Report," issued November
2006, stated that corruption and a flawed judicial
system were still the greatest problems the country
faced.
¶64. Croatia has ratified the Council of Europe
Criminal Law Convention on Corruption, the Council
of Europe Civil Law Convention on Corruption, the
United Nations Convention Against Transnational
Organized Crime and the United Nations Convention
Against Corruption.
¶65. Croatia is a member of GRECO (the Group of
States Against Corruption), a peer monitoring
organization that allows members to assess
anticorruption efforts on a continuing basis. An
evaluation of Croatia including suggestions and
opinions on CroatiaQs progress in its fight against
corruption, can be found on GRECOQs website
(www.greco.coe.int).
¶66. The Office for the Prevention of Corruption and
Organized Crime (USKOK)is currently staffed by 36
employees (doubled from 2005) and participates in
joint task forces with the Ministry of Finance and
Police. In 2006, a couple of high profile cases of
alleged corruption came under investigation, but
none have yet resulted in conviction. In order to
secure success of the Strategy (see paragraph 66),
the government will have to enforce cooperation
between Ministries and ensure financial as well as
human resources. The U.S. and EU are working with
Croatian authorities to build capacity to fight
organized crime and corruption.
A.11.b Bilateral Investment Agreements
¶67. Croatia does not have a foreign investment law;
foreigners receive national treatment under existing
legislation. In addition, investments by American
citizens are covered by the U.S. Croatian Bilateral
Investment Treaty (BIT), which entered into force in
June 2001. The treaty fulfills the principal U.S.
objectives for agreements of this type:
-- All forms of U.S. investment in the territory of
Croatia are covered;
-- Covered investments receive the better of
national treatment or most-favored-nation (MFN)
treatment, both while they are being established and
ZAGREB 00000046 011 OF 014
thereafter, subject to certain specified exceptions;
-- Specified performance requirements may not be
imposed upon or enforced against covered
investments;
-- Expropriation is permitted only in accordance
with customary international law standards;
-- Parties are obligated to permit the transfer, in
a freely usable currency, of all funds related to a
covered investment, subject to exceptions for
specified purposes;
-- Investment disputes with the host government may
be brought by investors, or by their covered
investments, to binding international arbitration as
an alternative to domestic courts.
¶68. For further information about BITs and for the
text of the U.S.-Croatian BIT please see
www.mac.doc.gov/Tcc/e-guides/eg_bits (under
"Croatia").
¶69. Croatia has signed investment protection
treaties/agreements with the following countries,
however, not all have entered into force:
Albania, Argentina, Austria, Belgium, Belarus**,
Bulgaria, Bosnia and Herzegovina, Czech Republic*,
Chile, Denmark, Egypt, Finland, France, Greece,
Germany, India, Indonesia**, Iran*, Italy, Israel*,
Jordan, Kuwait, Cambodia, Canada, Qatar*, China*,
Cuba**, Latvia**, Libya**, Hungary, Macedonia*,
Malaysia*, Malta, Republic of Moldova**,
Netherlands, Oman**, Poland, Portugal, Romania,
Russia*, United States, Serbia Montenegro, Slovakia,
Slovenia**, Spain, Sweden, Switzerland*, Thailand*,
Turkey, United Kingdom, Ukraine, Zimbabwe*.
(* = ratified, but not in force) (** = not
ratified or in force)
A.11.c OPIC and Other Investment Insurance Programs
¶70. Croatia is eligible for coverage from the U.S.
Overseas Private Investment Corporation (OPIC). For
more information on OPIC's insurance activities, see
www.opic.gov. The OPIC-supported $200 million
Bedminster Investment Capital Management Fund
invested in the Croatian banking sector (as part of
the consortium that purchased Dubrovacka Banka) and
the Croatian communications sector (by investing in
Digital City Media, a broadband cable TV network in
Croatia). Bedminster Capital Management also
manages an OPIC-supported private equity fund --
Southeast Europe Private Equity II -- which targets
investments in Croatia, among other countries.
Croatia is a member country of the Multilateral
Investment Guarantee Agency (MIGA), for more
information see www.miga.org.
¶71. In the event that OPIC should pay an
inconvertibility claim under its political risk
coverage, the local currency accepted by OPIC in any
subsequent recovery would be made available to the
Embassy on a priority basis for U.S. Government
expenses. The estimated annual U.S. dollar value of
local currency used by the Embassy is approximately
$13.5 million. The Embassy currently purchases
local currency from a local commercial bank at the
market rate. A major devaluation is unlikely.
A.11.d Labor
¶72. Croatia has an educated, highly-skilled, and
relatively high cost labor force compared with the
region. In general, employerQs wage costs are
approximately 110% of an employeeQs net wage. The
estimated average cost to employers in Croatia was
7,713 HRK (approximately $1,377) per month as of
October 2006. The average net wage at the end of
the third quarter of 2006 was 4,585 HRK ($818).
Minimum wage, as determined by the government, is
2100 HRK gross ($375) monthly, net is between 1400-
ZAGREB 00000046 012 OF 014
1500 HRK ($250-$267) depending upon exemptions. The
Croatian government controls wage levels in
government agencies/institutions and in the
remaining state-owned enterprises, affecting around
half of all workers. The wages in privately owned
companies are freely determined by contracts between
employer and employee.
¶73. Croatia adopted new labor laws in mid-2003
aimed at increasing labor market flexibility by
shortening the mandatory notification period before
dismissal and reducing generous severance package
requirements. However, Croatia still fares badly in
terms of time and expense in hiring and firing
employees. Labor has generally been supportive of
government efforts to boost competitiveness and
welcomes foreign investment but remains concerned
about any possible cuts in social spending.
¶74. The Law on Labor regulates employee and
employer relations through "employment contracts."
Fulltime employment must not amount to more than 40
hours per week and employees are entitled to at
least 18 working days of paid annual leave and seven
days of personal leave. The Law on Labor also
provides special protections for workers in
dangerous occupations, work at night, and work by
minors between the ages of 15 and 18.
¶75. Article 87 of the Law on Foreigners covers the
issuance of work permits. While there are quotas
(determined annually) for work permits, there are no
quotas for foreigners who execute key positions in
companies or representative offices. Likewise,
there are no quotas for business visas.
¶76. Workers are entitled by law to form or join
unions of their own choosing, and workers exercised
this right in practice. In general, unions were
independent of the government and political parties.
The Labor Code prohibits anti-union discrimination
and expressly allows unions to challenge firings in
court; however, in general, attempts to seek redress
through the legal system were seriously hampered by
the inefficiency of the court system.
A.11.e Foreign Trade Zones/Free Ports
¶77. Croatia has several Free Trade Zones (FTZs),
some in war-affected areas. Special incentives are
offered to users of FTZs.
¶78. The Law on Free Trade Zones allows a foreign-
owned or domestic company in FTZs to engage in
manufacturing, wholesale but not retail trade,
foreign trade, banking and other financial
activities. The Law on Profit Tax also covers
business in FTZs. FTZ users are eligible for tariff
waivers on imported products. FTZ users who
construct or participate in construction of
infrastructure projects worth 1 million HRK (about
$178,000) or more in the zone, are exempted from
paying corporate tax during the first five years of
operation in the zone. Other users in the zone pay
corporate tax in the amount of 50% of the regular
rate (i.e., 10% instead of 20%).
¶79. FTZs are exempted from any Croatian emergency
measures or other restrictions pertaining to foreign
trade or hard currency transactions. Users of the
zones may freely store their goods and production
equipment in the zones. Goods that are not intended
for trade on the Croatian market or for domestic
consumption are fully exempt from custom duties or
taxes. Imported goods will be taxed and assessed
duties per the value of the production materials
imported for the product and not per the value of
the finished product.
¶80. The following fifteen counties currently have
FTZS: Buje, Krapina-Zagorje, Osijek, Rijeka,
Slavonski Brod, Split, Splitsko-Dalmatinska County,
Obrovac, Ploce, Pula, Kukuljanovo, Varazdin, Zagreb,
Vukovar, and Ribnik counties. As mentioned
previously, EU accession will force the Government
ZAGREB 00000046 013 OF 014
to make changes in the free trade zone system and
the incentives system associated with them.
A.11.f Foreign Direct Investment Statistics
¶81. Compared to other advanced transitional
economies in the region, Croatia is in the middle
group in terms of foreign direct investment (FDI).
New or green-field investments have seen
particularly slow growth. According to the Trade and
Investment Promotion Agency, there were 18 foreign
investment projects initiated this year.
Privatization of strategic government-owned assets
has been the main source of FDI since Croatian
independence. Large state assets such as utilities,
the state insurance company and banks, are being
sold by the government, usually through
international tenders, and in some cases, with
specific laws regulating the sale of each enterprise
(e.g., the oil company and the electric company).
The Croatian Privatization Fund, the agency
responsible for the sale of other assets, has shares
and stock in 1012 (mostly non-performing) companies.
These include hotels, integrated agricultural
companies, an aluminum plant, two steel plants,
shipyards and other companies. The state's share of
the equity base value of these companies is about
11.524 billion HRK ($2.06 billion). Information
regarding the Croatian Privatization Fund, including
information on companies currently for sale, can be
found on its website, www.hfp.hr.
¶82. In November 2006, the GoC as part of its
privatization efforts, offered to the public first
rights for 15 per cent of their INA holdings.
Individual purchase was limited to 38,000 HRK
($6,785) and included the offer of one free share
for every ten retained for at least a year. 44,271
citizen participated in this unprecedented offer and
purchased shares at the cost of 1,690 HRK ($301)
each.
¶83. Foreign Direct Investment between 1993 and the
third quarter of 2006 totaled $13.15 billion, with
investments in the financial and telecommunications
sectors accounting for 40% of the total. FDI in
Croatia has shown steady growth in recent years.
¶84. Austria is the largest source of foreign
investment in Croatia, accounting for 22% of total
FDI since 1993. Germany is second with 16% of total
FDI, followed by France with 8.8% and the United
Stateswith 8.6%. Croatian firms invested $1.8
billion abroad between 1993 and the third quarter of
¶2006. The leading destinations for Croatian
investment were Switzerland, Bosnia and Herzegovina,
and Serbia and Montenegro. In the first three
quarters of 2006, Croatians invested $98million
abroad: approximately 38% in Switzerland, 16% in
Bosnia-Hercegovina, 15% in Serbia and Montenegro and
8% in Poland.
¶85. The Croatian National Bank provides information
about foreign investments in aggregate form which
can be found on their website at www.hnb.hr. The
following is a list of some of the major ($20
million and above) foreign investments in Croatia to
date:
Foreign investor: Barr Pharmaceuticals
Sector: pharmaceuticals
Croatian company: Pliva
Value $2.3 billion
Foreign investor: Deutsche Telekom (Germany)
Sector: telecommunications
Croatian Company: Croatian Telecom (51% of shares)
Value: $1.272 billion
Foreign investor: MOL (Hungary)
Sector: Oil Industry
Croatian Company: INA d.d. (26% of shares)
Value: $505 million
Banca Commerciale Italiana (Italy)
ZAGREB 00000046 014 OF 014
Banking/financial services
Privredna Banka (66.66% of shares in 1999 plus 10%
in 2002)
Value: $300 million + approximately $50 million,
according to media reports
Unicredito Italiano (Italy)
Banking/financial services
Zagrebacka Banka (96% ownership)
Value: $230 million (estimate)
Erste und Steiermarkische Bank (Austria)
Banking/financial services
Rijecka Banka (85% share)
Value: $155 million
Austria Creditanstalt Group (HVB Group) (Austria)
Banking/financial services
Splitska Banka (88% ownership)
Value: $132 million
Heineken N.V. (Netherlands)
Brewery
Karlovacka Pivovara company (94.42%)
Value: $125 million
Sutivan Investment and Excelsa Anstalt
(Lichtenstein)
Hotels and tourism
Plava Laguna (81.5%)
Value: $70 million
Ericsson (Sweden)
Telecommunications
Tesla Company
$48 million
Hofmann and Pankl Betelligungasse (Austria)
Minerals processing
Straza Company
$39 million
Societe Suisse de Cemment Portland (Switzerland)
Cement
Tvornica Cementa Koromacno company
$38 million
Interbrew (Belgium)
Brewery
Zagrebacka Pivovara company
$27 million
Coca Cola Amatil (Australia)
Non-alcoholic beverages
Croatian company: n/a
$20 million
BRADTKE