The government on Thursday sent to parliament a leasing bill aimed at expanding the activity of leasing companies and stepping up the control of their operations.
Finance Minister Slavko Linic said the banking risks would increase, while banks' exposure to the economy would be limited, so that it was necessary to strengthen other financial instruments, such as leasing.
He said there were 25 leasing companies in Croatia, accounting for 16 per cent of the financial sector, with assets totalling more than HRK 22.5 billion.
Only companies can provide leasing services now and the bill moves that individuals can do so too.
The bill moves equating business rules for domestic and European Union leasing companies. The latter need the approval of Croatia's HANFA regular to start operating in Croatia.
The bill also moves that leasing companies set up risk management systems as well as internal controls and audits.
At today's session, the government also reduced water rates for the extraction of salt by 71 per cent and greenhouse farming by 60 per cent. Agriculture Minister Tihomir Jakovina said this was the government's attempt to help the economy.
As a result, the Croatian Waters company will make HRK 1.2 million less in revenue than in 2012.
The government also adopted a report on negotiations for the signing of a contract on the establishment of a centre for the development of finance, which Croatia is expected to sign on September 3.
This is a regional initiative for cooperation in public finances and central banking. The contract will be signed by Croatia, Bosnia and Herzegovina, Bulgaria, Montenegro, Kosovo, Macedonia, Moldova and Slovenia, while Albania, Romania, Serbia and Turkey have not decided yet.
(EUR 1 = HRK 7.5)
(Hina)
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