KOSTRENA, June 10 (Hina) - The metal workers' trade union in the "Viktor Lenac" shipyard on Tuesday sent an open letter to the US and German ambassadors calling on them to urgently intercede with their governments so that a project of
the shipyard's development could be continued and completed.
KOSTRENA, June 10 (Hina) - The metal workers' trade union in the
"Viktor Lenac" shipyard on Tuesday sent an open letter to the US and
German ambassadors calling on them to urgently intercede with their
governments so that a project of the shipyard's development could
be continued and completed. #L#
The union sent letters to Lawrence Rossin and Gebhardt Weiss in
response to "statements that the US company International Finance
Corporation (IFC) - a member of the World Bank - and the German State
Investment Bank (DEG) are going to withdraw from the shipyard's
development project".
"IFC and DEG are the most responsible for this grave business
crisis. Their duty, as reputable investors, is to support
development in transition countries, particularly since this
development project was agreed on with the Croatian government,"
the union letter said.
If IFC and DEG do not provide funds necessary to continue the
development cycle soon, it is more than likely that bankruptcy
proceedings will be initiated and jobs lost, which will result "in
an unfavourable perception of and mistrust in capital coming from
the US and Germany", reads the letter.
The completion of the second phase of the development cycle
requires some US$43 million. The government has approved a US$17-
million-loan through the Croatian Bank for Reconstruction and
Development on condition the rest of the funds are provided by major
shareholders.
(hina) sp rml sb