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CREDITOR BANKS REACH PRELIMINARY AGREEMENT ON RIJEKA SHIPYARD

ZAGREB, July 8 (Hina) - Today's meeting between creditor banks and the owners of Rijeka's "Viktor Lenac" shipyard on the financial consolidation of the shipyard has resulted in a preliminary agreement, Sanja Pancic, a spokeswoman for the HVB bank in whose offices the meeting took place, said on Tuesday.
ZAGREB, July 8 (Hina) - Today's meeting between creditor banks and the owners of Rijeka's "Viktor Lenac" shipyard on the financial consolidation of the shipyard has resulted in a preliminary agreement, Sanja Pancic, a spokeswoman for the HVB bank in whose offices the meeting took place, said on Tuesday. #L# Bank manager Goran Gazivoda confirmed that the preliminary agreement had been reached, but added that "everything is still on shaky ground," Pancic told reporters outside the HVB building in Zagreb. No other public statements will be made until a final solution is found and the agreement that has been reached is confirmed, she said. It will take some time before the agreement reached today goes through the banks' managing bodies. At the request of several opposition representatives, deputy prime minister Slavko Linic informed parliament of the course of the negotiations on the financial consolidation of the shipyard. After banks reach an agreement on investing 28 million dollars in the shipyard, the government will have to decide about the remaining 2.5 million dollars that is necessary, Linic said. "The government is facing a new dilemma: can it ensure an additional 2.5 million dollars, end the Lenac story and sign a letter of intent on financial consolidation?" he said. Unofficial sources said that the government would make a final decision on the matter at its session on Thursday, when it will decide whether it will provide 2.5 million dollars in addition to the 17 million dollars it has given to the Croatian Bank for Reconstruction and Development (HBOR) for financing the second phase of development of "Viktor Lenac", or the shipyard will go into bankruptcy. (hina) vm sb

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