Government sets up task force for cooperation with Infobip on AI

The government has established a group tasked with defining the framework for cooperation with the Infobip IT company regarding artificial intelligence (AI) and preconditions to position Croatia as an EU hub for AI development.

Economy and Sustainable Development Minister Tomislav Ćorić will chair the task force while the other members are Minister of Science and Education Radovan Fuchs, the head of the Prime Minister's office, Zvonimir Frka-Petešić, state-secretary in the Central State Office for the Development of a Digital Society, Bernard Gršić and special government advisor and coordinator of the task force Ivana Vukov.

"The task force needs to define a framework for cooperation with Infobip in the area of artificial intelligence aimed at accelerating digital transformation in the economy, education, science, tourism and public administration and to create the preconditions to position Croatia as the centre of AI development in the EU," underscored Minister Ćorić.

He added that the task force will coordinate with Infopib and inform the government of the agreements achieved and recommend further steps. If necessary, the task force can include representatives of other relevant bodies and institutions, organisations and companies that can contribute to meeting the set tasks, as well as external associates.

Participants in the task force are not entitled to any remuneration for their participation.

The cooperation was established at the initiative of the Vodnjan-based Infobip company, one of the strongest domestic IT companies and is recognised in the world, considering that AI is key to digital transformation of society and has become one of the EU's priorities.

The government's explanation supporting the establishment of that cooperation notes that it will promote the broad implementation of advanced technology (AI- Artificial Intelligence/AR-Augmented Reality/ML-Machine Learning/IoT- The Internet of Things) and that it will accelerate digital transformation of society and the economy.

General government deficit 6.8% of GDP in 2020

The government sent a draft report on the execution of the 2020 state budget to parliament, and the document notes that total revenue amounted to HRK 131.6 billion, expenditure to HRK 153.6 billion and the general government deficit amounted to HRK 25.4 billion or 6.8% of GDP.

"On the one hand we all know very well how many and what challenges public finances were faced with, however they managed to withstand and will continue to do so with all the challenges that COVID-19 and the earthquake have put before us," Finance Minister Zdravko Marić said.

Everything the government achieved in the past term to reduce public debt to GDP ratio was almost completely neutralised in one year, he added.

However, if we had not done what we did, Croatia's public debt would be more than 100% of GDP and would have narrowed our manoeuvring space to react to the situation in health and the economy at the same time, said Marić.

He added that all expenditure items were under absolute pressure, however, in 2020, a year marked by the COVID pandemic and the earthquakes, expenditure for interest was reduced by HRK 2.2 billion. That, he underscored, supports what the government is doing and that is maintaining responsible and sustainable public finances.

The report on the execution of last year's budget notes that total revenue amounted to HRK 131.6 billion which is 0.4% more than planned and about 6% less than in 2019.

Total expenditure amounted to HRK 153.6 billion which made up 98.5% of the planned expenditure for 2020 while compared to 2019 that is HRK 13.7 billion or 9.8% more. Marić recalled that the majority of that increase in expenditure was related to health and jobkeeping measures and other challenges as a consequence of the earthquakes that hit northern and central Croatia in March and December 2020.

The consequences of the COVID-19 pandemic interrupted positive economic trends that were recorded over the preceding five years and the economy experienced an 8% downturn. The decrease in exports of goods and services, household consumption and gross investments in fixed capital contributed to the contraction of the economy and the negative effects of the epidemic were particularly felt in the tourism sector, the report underlines.

Total gross foreign debt at the end of 2020 reached €40.6 billion, or 82.4% of GDP, the report says.

HAC and HC operators provided with state guarantees for loans

The HAC motorway operator was given consent and a guarantee for a €62.58 million loan from a group of banks -- HBOR, ZABA and HPB - to reschedule and existing loan previously taken from the German KfW IPEX-Bank.

HAC will thus be provided with an additional cash flow in the amount of €35.8 million in the period from June 2021 to June 2024 and the funds will be used for the construction of the Lekenik-Sisak section of the A11 motorway, Transport Minister Oleg Butković said.

HAC has been provided with a state guarantee for a loan of €81.4 million from the Croatian Bank for the Reconstruction and Development (HBOR) and the Croatian Postal Bank (HPB) to finance the Rupa-Rijeka-Žuta Lokva section of the A7 motorway. The loan with a four-year grace period will be settled within 13 years.

The Hrvatske Ceste road operator was today provided with a state guarantee for a loan amounting to HRK 703 million from Erste&Steiermärkische Bank, HPB, OTP, Privredna banka Zagreb (PBZ) and Zagrebačka banka (ZABA). The 12-year maturity loan with a three-year grace period will be used to finance HC's projects and plans in 2021.

30-year concession for Porto Baroš marina to ACI-Gitone

The concession for the Porto Baroš marina will cover 105,000 square metres. The fixed amount of the concession fee is HRK 5 per square metre or about HRK 530,000 annually, Minister of the Sea, Transport and Infrastructure Oleg Butković said at the cabinet meeting.

"After 15 years, the fixed part of the concession fee will be increased every five years by HRK 2 per square metre, which is a total of HRK 22.2 million for the entire duration of the concession. The variable part of the concession fee payable by the concessionaire is 4% of revenue," the minister said.

ACI-Gitone was the only company to make an offer for Porto Baroš. It plans to invest HRK 363.7 million in the project and hire 128 workers.

The government also granted a 20-year concession to the Kali Tuna company for tuna farming between the islets of Fulija and Kudica in the Iški Kanal channel, off the central Adriatic city of Zadar. The fixed amount of the concession fee offered was HRK 1.01 per square metre, or HRK 212,000 annually.

The government issued a tender for the sale of a property in Lukoran on Ugljan island, off Zadar. The starting price is HRK 79.8 million. The buyer will also have to pay the fee for the exclusion of the property from the wooded area, which may amount to a maximum of HRK 1.8 million.

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