Croatian gov’t issues state guarantees for MKM Yachts, Uljanik Brodogradnja 1856

ZAGREB, Sept 3 (Hina) – The government on Thursday decided to issue state guarantees to the Croatian Bank for Reconstruction and Development or other banks in Croatia and abroad for loans for the building of a ship contracted by MKM Yachts and for a loan for launching production in Uljanik Brodogradnja 1856.

The government allowed the Finance Ministry to issue a €80.1 million state guarantee, plus expenses and interest, for the building of a passenger ship contracted by MKM Yachts. The guarantee covers 80% of a loan taken by MKM Yachts. The ship’s hull will be built by the 3. Maj shipyard in Rijeka.

The second guarantee, for the Uljanik Brodogradnja 1856 shipyard, amounts to HRK 32.5 million, plus expenses and interest.

Pula Mayor Boris Miletic on Thursday supported the government’s decision but called on the government, as the biggest part-owner in the Uljanik shipyard, to oversee this time how the money was spent.

Speaking to Hina, Miletic said he did not welcome “the government’s slow pace in resolving the Uljanik situation. Decisions should be made sooner. There’s no reason to wait one year for each step.”

“The City of Pula and Istria County will support every attempt to relaunch production in Uljanik,” he said.

Miletic would not comment on the statement by the Istria County branch of the ruling HDZ that the government decision showed its consistency in preserving shipbuilding and creating jobs as well as in caring for the economy and industry.

He said Uljanik did not need politicisation again and called on the government to explain in detail, to the public and local government, the plan to relaunch production in Uljanik.

Unionist Boris Cerovac said the government decision was a big step towards relaunching production in the shipyard but added that the state guarantee did not solve the issue of the settlement of workers’ claims from Uljanik.