ZAGREB, September 19, 2019 – During its meeting on Thursday the government authorised the Finance Ministry to issue a government guarantee to the 3. Maj shipyard in Rijeka for a loan to be taken from the Croatian Bank for Reconstruction and Development (HBOR) and/or other commercial banks in the amount of 26 million euro in order to complete the construction of a ship at the dock.
Minister of Economy, Entrepreneurship and Crafts Darko Horvat underscored that the contracted price for a ship being constructed for the Algoma Central Corporation from Canada amounts to 33.36 million euro and that once the shipyard pays back 50 million kuna to HBOR to settle previous liabilities and repays the amount of this latest guarantee, the remainder of the revenue from the sale of the ship will be paid into the state budget.
Horvat added that the Jadranbrod – Croatian Shipbuilding Corporation has positively assessed that the contract with the Canadian client and that no risks have been identified in that contract.
Horvat addressed reporters ahead of the cabinet meeting and informed that there were still two ships at the Rijeka-based dock that will require government guarantees.
He explained that the completion of the two ships will need about 560 million kuna which will set the requirements for the shipyard to continue doing business in an orderly manner and contract new ships in that each state guarantee that is issued must be repaid after each ship is completed and delivered.
Prime Minister Andrej Plenković is travelling to Rijeka on Thursday afternoon and is expected to visit the dock.
More news about Croatia shipbuilding can be found in the Business section.
