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GOVT ISSUES LOAN GUARANTEE TO HBOR FOR CONSTRUCTION OF TWO SHIPS

ZAGREB, Feb 11 (Hina) - The Croatian Government on Thursday issued a loan guarantee to the Croatian Bank for Reconstruction and Development (HBOR) for the construction of two new ships at Rijeka's shipbuilding yard "3. Maj". The guarantee refers to a total of US$53.4 million in loans granted to "3. Maj" and was a precondition for a preliminary agreement on the construction of two tankers for an Italian client. The ships were ordered by the company Calis S.p.A. of Augusta, owned by the Geneva-based firm Ottavio Novella S.p.A. The tankers should be delivered in April and October 2001. The Government has also issued state guarantees to the HBOR for a US$60-million-worth loan, to be used for technical renovation of shipbuilding companies that are undergoing financial reorganisation. Economy Minister Nenad Porges said that the rehabilitation of five Croatian shipbuilding companies was slow and t
ZAGREB, Feb 11 (Hina) - The Croatian Government on Thursday issued a loan guarantee to the Croatian Bank for Reconstruction and Development (HBOR) for the construction of two new ships at Rijeka's shipbuilding yard "3. Maj". The guarantee refers to a total of US$53.4 million in loans granted to "3. Maj" and was a precondition for a preliminary agreement on the construction of two tankers for an Italian client. The ships were ordered by the company Calis S.p.A. of Augusta, owned by the Geneva-based firm Ottavio Novella S.p.A. The tankers should be delivered in April and October 2001. The Government has also issued state guarantees to the HBOR for a US$60-million-worth loan, to be used for technical renovation of shipbuilding companies that are undergoing financial reorganisation. Economy Minister Nenad Porges said that the rehabilitation of five Croatian shipbuilding companies was slow and that without additional investments, those companies would hardly be able to survive market competition. (hina) jn rml

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