Croatia Osiguranje Dd logo

CROS-R-A - Croatia Osiguranje Dd News Story

n/a 0.0  0.0%

Last Trade -

Sector
Financials
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £384.6m
Position in Universe th / 640

Croatia's state budget may take hit as problems at biggest dock persist

Wed 5th September, 2018 1:29pm
ZAGREB, Sept 5 (Reuters) - Problems at Croatia's biggest
shipbuilding group Uljanik  ULJN.ZA  may cost the state as much
as 70 million euros ($81.09 million), Finance Minister Zdravko
Maric said on Wednesday.
    More than 4,000 workers at Uljanik went on strike last month
over delayed salary payments. The government helped secure funds
to pay wages due in July and August, but the future of the
company's docks in the northern Adriatic cities of Pula and
Rijeka remains uncertain.  urn:newsml:reuters.com:*:nL8N1VM3QV
    In the meantime an order for the construction of four ships
has been cancelled. The state guaranteed the repayment of loans
for financing the construction of the ships and advance payments
made by the purchaser in case of problems with construction or
delivery.
    "Four ships will not be completed and there is a high
likelihood that the state guarantees worth up to 70 million
euros would be activated. But we're ready for the worst case
scenario," Maric told reporters.
    Croatia has made major efforts to consolidate its budget in
the last two years, posting a surplus in 2017 after running a
high deficit for years.  urn:newsml:reuters.com:*:nL8N1RX27Y   
    Under European Union rules, the state cannot provide direct 
financial aid to Uljanik but last January the European
Commission cleared Croatia's state guarantee for a loan worth 96
million euros to help the shipyards stay afloat.  LnB5N1JD02F 
    The EU's Competition Commissioner Margrethe Vestager is set
to visit Zagreb on Friday and one of the major topics for
discussion will be the prospects for Croatia's once prosperous
shipbuilding industry.
    Since Croatia declared independence from Yugoslavia in the
early 1990s its docks have gradually lost business to Asian
shipbuilders, such as South Korea, missing opportunities to
modernise and produce more sophisticated vessels.
    The European Commission is currently assessing a
restructuring plan for Uljanik.
    Croatian Prime Minister Andrej Plenkovic said the government
would hold a session on Sept. 13 in the city of Pula, where
Uljanik has its headquarters, to discuss how the country's
shipbuilding industry could survive.
    Two other major Croatian docks were restructured before
Croatia joined the EU in 2013, but they are also struggling to
operate profitably. 


($1 = 0.8633 euros)

 (Reporting by Igor Ilic; Editing by Kirsten Donovan)
 ((igor.ilic@thomsonreuters.com; +385 1 4899 970; mobile +385 98
334 053;))
© Stockopedia 2020, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.