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Croatian shipyards granted state subsidies

ZAGREB, Sept 26 (Hina) - The Croatian Competition Agency, whose acronym in Croatian is AZTN, last week granted consent for the government to issue guarantees amounting to 4.2 billion kuna for four Croatian shipyards so that they can continue operating until they draw up plans for their restructuring, AZTN chairwoman Olgica Spevec said on Tuesday.
ZAGREB, Sept 26 (Hina) - The Croatian Competition Agency, whose acronym in Croatian is AZTN, last week granted consent for the government to issue guarantees amounting to 4.2 billion kuna for four Croatian shipyards so that they can continue operating until they draw up plans for their restructuring, AZTN chairwoman Olgica Spevec said on Tuesday.

The one-off funds were granted for a period of six months, Spevec told reporters.

The grating of funds is to be followed by plans for the restructuring of each shipyard, which are to be approved by the AZTN and the European Commission.

The deadline by which plans for the restructuring of shipyards are to be completed is 21 March 2007, when they are to be approved by the AZTN and the EC.

Of the 4.2 billion kuna, 1.687 billion is intended for Brodosplit, 1.67 billion to "3. maj", 624.86 million for Brodotrogir, and 220.78 million for the Kraljevica shipyard.

The funds, to be spent for payments to suppliers, salaries, etc., were granted under strict conditions, and the Economy Ministry will supervise how the shipyards are spending loans to be granted by banks on the basis of the state guarantees, Spevec said.

Asked what if plans for the restructuring of shipyards were not completed by 21 March 2007, Spevec said that European regulations envisaged liquidation in such a case, but that this also depended on the sector and that in some countries the deadline had been prolonged.

Solutions should be sought that will result in serious restructuring, she said.

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