ZAGREB, Sept 25 (Hina) - In four years' time, Croatia's shipbuilding industry will be one of the main development generators, Economy Minister Goranko Fizulic said on Monday presenting government measures for the rehabilitation of
five shipyards. Last week the Croatian government adopted measures for stabilising the situation in five Croatian shipbuilding companies. The 4.2 billion-kuna-worth measures should be implemented by 2003. This amount includes 1.5 billion kuna for subsidies for the shipbuilding industry for this and the next three years; the writing-off of 490-million-kuna worth budgetary claims for 1999; exemption from the payment of 245 million kuna of contributions for 2000; the settling of debts with shares from the Croatian Privatisation Fund portfolio; rescheduling, i.e. new loans with state guarantees for the payment of old loans. These measures should lead to the com
ZAGREB, Sept 25 (Hina) - In four years' time, Croatia's
shipbuilding industry will be one of the main development
generators, Economy Minister Goranko Fizulic said on Monday
presenting government measures for the rehabilitation of five
shipyards.
Last week the Croatian government adopted measures for stabilising
the situation in five Croatian shipbuilding companies. The 4.2
billion-kuna-worth measures should be implemented by 2003.
This amount includes 1.5 billion kuna for subsidies for the
shipbuilding industry for this and the next three years; the
writing-off of 490-million-kuna worth budgetary claims for 1999;
exemption from the payment of 245 million kuna of contributions for
2000; the settling of debts with shares from the Croatian
Privatisation Fund portfolio; rescheduling, i.e. new loans with
state guarantees for the payment of old loans.
These measures should lead to the completion of rehabilitation of
the five shipyards by year's end and their privatisation next
year.
The financial rehabilitation of Croatian shipyards started in
early 1996 and, according to the authors of a Report on the
Situation in the Shipbuilding Industry, it included previously
incurred losses and obligations, which called for new
rehabilitation procedures. According to the Report, the shipyards'
accumulated losses late last year amounted to 5.3 billion kuna
without rehabilitation effects, i.e. 348 million kuna with
rehabilitation effects.
The rehabilitation process has helped save 10,800 jobs, which is
about 40 percent of pre-war figures (in 1990, 25,000 persons worked
in the five shipyards). However, the report also warns that the
current number of workers is too high and the government is planning
to set aside 51 million kuna for some 1,040 redundant workers next
year.
The measures also include 1.56 billion kuna of budgetary subsidies
for 2000 and 2001.
Data for the first six months of this year show that by correcting
subsidies and unpaid contributions the shipyards' losses would be
eliminated. This is why the authors of the Report and the government
decided on additional rehabilitation measures for some companies.
These additional measures are aimed at ensuring preparations for
privatisation without any hasty moves. The privatisation process
could start as early as next year. Foreign auditors and consultants
have already been entrusted with preparing that process and they
are expected to finish their studies in late October this year or
the beginning of next year.
The five shipyards currently have contracts on the construction of
35 ships, to be delivered by 2003, and are expecting new contracts
with domestic shipping agencies.
(hina) jn rml