Finance Minister Slavko Linic said the Ivica Racan Cabinet (2000-03) adopted a decision to take over the shipyard's debt and turn it into equity, as part of its financial consolidation, but that the subsequent governments did not carry out the decision.
Since the Economy Ministry is about to sign a contract on Brodosplit's sale to the DIV company, the government is now dealing with that debt, he added.
Also today, the government gave its consent to the Croatian Roads company to borrow HRK 1 billion to finance a plan for the building and maintenance of state roads as well as HRK 400 million for the renovation of 735 km of county and local roads.
The government also rescinded its August 2 conclusion to launch negotiations on amendments to collective agreements in state companies and institutions with a view to aligning their workers' benefits with those of government employees.
Unions recently protested against the conclusion, saying the government was unlawfully interfering in collective bargaining. The leaders of five union federations have threatened with leaving the Economic and Social Council.
Labour Minister Mirando Mrsic said the conclusion was aimed at prompting social dialogue while acknowledging the economic situation.
There was no social dialogue in some cases so we are withdrawing the conclusion, he said, adding that unions and public companies' management boards would meet soon to solve the issue.
Prime Minister Zoran Milanovic said unions should understand the current situation and that taking something from anyone was not in the government's intention.
Milanovic said he understood the unions' fear and distrust that when they lost something, it was over, but added that it was not over, as there was tomorrow.