September 4 (SeeNews) - The Croatian government said it has issued state guarantees to two shipyards - Uljanik Brodogradnja 1856 and MKN Yachts - for loans to help support the construction of new ships.
Uljanik Brodogradnja 1856 will receive state guarantees for taking a loan of up to 32.5 million kuna ($5.1 million/4.3 million euro) from the Croatian Bank for Reconstruction and Development (HBOR), or another lender, with the aim of launching production, the government said in a statement on Thursday.
Uljanik Brodogradnja 1856 was established earlier this year and in March obtained the 30-year concession rights of shipbuilding group Uljanik, which is a subject of bankruptcy proceedings, in order to resume shipbuilding activities in the Adriatic city of Pula, where Uljanik is based.
In addition, the government will issue state guarantees to Rijeka-based MKM Yachts, the local unit of Australian luxury cruise and tour services provider Scenic Group, for a loan of up to 80 million euro ($95 million), plus interest costs, to be taken from HBOR or other domestic or foreign lenders.
The loan will finance the agreed construction of a polar cruise ship for another Scenic subsidiary - Malta-based PEC 2.
Prime minister Andrej Plenkovic said in the statement that MKM Yachts' subcontractor in the deal is Rijeka-based shipyard 3. Maj.
(1 euro = 7.53469 kuna)