Croatian PM announces state collateral for Petrokemija

Caretaker Prime Minister Tihomir Oreskovic said on Tuesday the issue of a loan to the Petrokemija artificial fertiliser manufacturer so that it can pay its debts, was solved and that the government would put up the collateral for it, but not with shares in the Jadran tourism company.

"I think we will solve this Petrokemija problem this week with a government collateral and I believe that Petrokemija is financially going in the right direction," Oreskovic told reporters.

He said he had spoken with the company's management board over the summer, that he believed it was a board of experts, and that the company was going in a good direction which was also good for its workers.

After a government session last week, caretaker Economy Minister Tomislav Panenic said the state's 80% interest in Jadran would not be sold but put up as collateral so that Petrokemija could take a loan from the Croatian Bank for Reconstruction and Development to pay a HRK 200 million debt to PPD.

Unionists, former workers who are creditors and local politicians objected to that, saying that would damage Jadran's development, which needs investments to come out of bankruptcy.

Last update: Tue, 23/08/2016 - 14:19

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