ZAGREB, March 5 (Hina) - Croatian Economy Minister Ljubo Jurcic will on Thursday recommend to the government that it make the necessary decision for a sales contract for the Sisak ironworks to the Russian Mechel company to come into
affect. He also recommended that the government should pay out overdue salaries (for two months) to the plant's workers with a total value of 10 million kuna (1.3 million euros).
ZAGREB, March 5 (Hina) - Croatian Economy Minister Ljubo Jurcic
will on Thursday recommend to the government that it make the
necessary decision for a sales contract for the Sisak ironworks to
the Russian Mechel company to come into affect. He also recommended
that the government should pay out overdue salaries (for two
months) to the plant's workers with a total value of 10 million kuna
(1.3 million euros). #L#
This was agreed at a working meeting on Wednesday relating to the
fulfilment of pre-conditions for Mechel to take over the Sisak
ironworks.
Jurcic assessed Mechel's guarantee of 3.6 million euros as
sufficient because it contained satisfactory assurances from a
first class bank.
The guarantee was given by the Russian UralSib Bank, i.e. Uralian-
Siberian Bank, Jurcic said assessing that this was one of the
largest Russian banks that conducts a great deal of business abroad
and as such it cannot but pay out the guarantee and not damage its
reputation.
He emphasised that the guarantee would be sufficient to cover six
minimum monthly wages should the Russians decide to pull out of the
company prior to the contracted five years.
The guarantee is based on Russian legislation and that is not a
problem, Jurcic said, adding that they were still checking the
practise in Russia relating to payments of bank guarantees.
As far as amendments to the contract are concerned, Jurcic reported
that these were all agreed to and should any dispute arise, Croatian
law would prevail.
Jurcic said that he would very likely recommend to the cabinet that
a mortgage should be lifted on the bankrupt ironworks. He explained
that there was just one technical detail to resolve and it could
arrive later this evening but he would not say what it entailed.
As far as insuring funds for salary payments Jurcic said that these
would be secured by the government through commercial sources, or
rather a bank guarantee which would be repaid with the sale of spare
parts and raw materials remaining in the ironwork's warehouses.
According to the minister, tomorrow the government should also
choose a bank from which it would take a loan for the payment of
wages because the authorities wish to pull out of the ironworks as
soon as possible and hope that all its business problems will be
resolved through its regular business operations or on the
financial market.
(hina) sp ms