Ministry says HRK 105.6 mn set aside to bail out Jadroplov

Photo jadroplov 5_18.jpg

Croatia's Sea, Transport and Infrastructure Ministry on Thursday reported that the European Commission yesterday approved the government's bailout plan for the Split-based Jadroplov, whereby 105.6 million kuna would be given to that shipping company as a state aid.

This amount will be necessary to make sure that this company, specialised in the international maritime transport of goods with its own tramp ships, managing crews and technical maintenance of ships, can be restructured to be a viable company in the long run.

The 2015-2019 plan of restructuring was okayed by the Commission, which established that the plan was in line with EU State aid rules.

"Jadroplov will make a significant own contribution to the cost of restructuring of HRK 144.9 million (around €19.5 million), in particular by securing financing from the private market and through asset sales. Moreover, the assets sale contributes to reducing the potential distortions of competition brought about by the restructuring aid. The Commission therefore concluded that the restructuring plan was in line with EU State aid rules, in particular the 2014 Rescue and Restructuring Guidelines," the Commission stated on Wednesday.

"Croatia is supporting the process with a subsidy and two State guarantees on bank loans for a total State support amount of HRK 105.6 million (around €14.2 million). The Commission found that Jadroplov's restructuring plan will enable the company to become viable in the long term without continued State support."