ZAGREB, May 23 (Hina) - The ruling coalition's five parties endorsed during Thursday's parliamentary debate an advance payment collateral draft agreement between Croatia and the EBRD intended to finance the production of the Uljanik
shipyard. Opposition MPs claimed the agreement set extensive limits on the shipyard's business and development.
ZAGREB, May 23 (Hina) - The ruling coalition's five parties
endorsed during Thursday's parliamentary debate an advance payment
collateral draft agreement between Croatia and the EBRD intended to
finance the production of the Uljanik shipyard. Opposition MPs
claimed the agreement set extensive limits on the shipyard's
business and development. #L#
The agreement is a standard one, said Deputy Finance Minister Damir
Kustrak, adding that the EBRD's (European Bank for Reconstruction
and Development) entry into the Croatian shipbuilding industry was
a good signal to other foreign investors.
Uljanik and the EBRD signed an agreement on an advance collateral to
a Russian client for a US$11.49 million downpayment.
The government signed a subcontract, assuming the obligation to
settle costs if Uljanik ran into financial difficulties.
The government and the EBRD maintain the agreement should complete
the successful financial restructuring of the northern Adriatic
shipyard. Uljanik is the most successful of Croatia's three
principal shipyards.
The government maintains the new financing model whereby the EBRD
gives collateral will give positive results and be applicable to
other shipyards which cannot take loans without state collateral.
The EBRD has invested one billion euros into Croatia's public and
private sector to date, said Kustrak.
(hina) ha