November 20 (SeeNews) - The Croatian government will provide state guarantees on a 70 million kuna ($10.4 million/9.4 million euro) loan το diversified group Djuro Djakovic [ZSE:DDJH] to help unblock its accounts and continue works on agreed deals, local media reported on Wednesday.
The move will represent an urgent financial injection to the group, while the government is still actively looking for a long-term solution of the Djuro Djakovic problems, news daily Poslovni Dnevnik reported, quoting unnamed sources.
Last week, Djuro Djakovic said its bank account had been blocked again after a temporary unblocking which allowed the company to pay the late September wages to its workers.
The blue-chip group announced last month it was in talks with creditors, trying to resolve a liquidity crisis which has left it and two of its four affiliated companies short of funds to pay out the September wages.
Earlier this month, economy minister Darko Horvat said that the defence ministries of Croatia and the US were in talks on a joint project on the future of Djuro Djakovic, in which the US government could participate financially, logistically, as well as via transfer of knowledge and technology.
Djuro Djakovic posted a statement on its website last week, saying US ambassador to Croatia, William Robert Kohorst, had visited the company and met its representatives.
"You know that we want to cooperate with Djuro Djakovic. There is a possibility to bring in some additional orders. I think that US firms are interested in investing but I am not aware of how far the negotiations have reached," Kohorst was quoted as saying.
Economy minister Horvat has also said that several European companies are interested in entering into a strategic partnership with Djuro Djakovic, but did not reveal their names.
According to earlier media reports, UK-headquartered BAE Systems is interested in entering Djuro Djakovic's ownership structure, planning to produce the Bradley combat vehicles in Croatia's Slavonski Brod where the group is based.
The government controls a stake of 22.45% in Djuro Djakovic. Excluding the government and its funds, local individual Nenad Bakic holds the largest single stake of 17.71% in the group, according to November 20 stock exchange data.
Djuro Djakovic shares traded up 9.4% at 5.12 kuna on the Zagreb bourse by 10:55 CET on Wednesday.