Government Provides State Guarantee for 300 Million Đuro Đaković Loan

Total Croatia News

ZAGREB, January 16, 2020 – The government decided on Thursday to provide a state guarantee for a 300 million kuna loan for the Đuro Đaković metal and mechanical engineering group Đuro Đaković Special Vehicles and Đuro Đaković Industrial Solutions.

Prime Minister Andrej Plenković said the guarantee was being provided because the company was important for Brod-Poslavina County and its “stumbling” would affect the county’s economic and social situation.

Đuro Đaković has four subsidiaries and employs about 850 people, he said, adding that the European Commission had been notified.

“With this decision, we are giving Đuro Đaković a chance and will see to it that it is adequately carried out in the days and weeks ahead,” Plenković said.

Economy Minister Darko Horvat said the company was unable to ensure stable financing, notably since mid-2019, when a bank which financed the production of goods wagons cancelled further cooperation. This prompted Đuro Đaković to seek a 300 million kuna bailout.

Horvat said the decision to provide the state guarantee “represents support for a bailout in line with rules on state aid and European Commission guidelines on state aid.”

The loan will be used over a six-month period and not after December 31, he added.

More news about Đuro Đaković can be found in the Business section.


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