Government Sells Zadar-Based Hotel Iž for 11.5 Million Kuna

Total Croatia News

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ZAGREB, November 30, 2018 – The government on Friday decided to sell its share in a former army singles dormitory – Hotel Iž – in Zadar, for 11.47 million kuna, and issued a government guarantee for the Split-based Jadroplov shipping company for a loan in its restructuring process

The call for bids for the state’s share in the 4,399-square-metre-large Hotel Iž, at a starting price of 6.6 million kuna was advertised early August.

Four bids were submitted and a recommendation has been made for the government to accept the most favourable bid submitted by the Zadar-based “Hostel For You” company of 11.47 million kuna, state-secretary in the State Assets Ministry, Tomislav Boban, said.

The government endorsed amended conditions for a loan of 720.9 million kuna taken from the Croatian Bank for Development and Reconstruction (HBOR) by the Hrvatske Ceste road authority and that was guaranteed by the government.

According to Minister of the Sea, Transport and Infrastructure Oleg Butković, the amended conditions mean reducing the interest rate of 4% to a fixed annual rate of 2.5% and the extension of the grace period from 31 March 2019 to 31 March 2022.

The government further endorsed a state guarantee to the Jadroplov company for a loan from the Hannover-based Norddeutsche Landesbank Girozentrale, as foreseen in its Restructuring Plan for 2015 – 2019.

State-Secretary in the Finance Minister Zdravko Zrinušić explained that the financial collateral provided by the state was a constituent part of the restructuring plan that was approved by the European Commission.

For more on the hotels in Croatia, click here.


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