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Croatia paid HRK 14.4 bln in aid to shipyards in 2008-12

ZAGREB, Jan 3 (Hina) - Croatia paid HRK 14.4 billion in aid to its shipbuilding industry between 2008 and 2012, Finance Minister Slavko Linic said at a government session on Thursday at which a decision was adopted to align state aid to this industry with the European Union's acquis.

Of that amount, more than HRK 11.6 billion was paid for capital and HRK 2.8 billion for interest and other costs. The money was used to fold production, deal with employment issues, structural reforms and modernisation of the shipyards, Linic said.

Croatia now has to align its aid to the shipyards with the EU framework which envisages only innovation incentives, regional incentives and export loans. This will be in force this year, since in early 2014 the EU will cancel aid to the shipbuilding industry but retain innovation incentives and regional incentives but for all industries, said Linic.

The government also amended the regulation on the purchase of a house or flat in areas of special state concern, returning the price per square metre from EUR 798 to 700, as it was in late 2007.

(EUR 1 = HRK 7.5)

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