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Croatian govt issuing $10 mln guarantee on loan to Jadroplov

Author Radomir Ralev
Croatian govt issuing $10 mln guarantee on loan to Jadroplov Author: Radomir Ralev

ZAGREB (Croatia), December 3 (SeeNews) - Croatia's government said it decided to issue a $10 million (8.8 million euro) guarantee for a loan that will be extended to shipping company Jadroplov [ZSE:JDPL].

The guarantee will cover 20% of the value of a $49.94 million kuna loan to Jadroplov, to be extended by German bank Norddeutsche Landesbank (Nord/LB), the government said in a statement on Friday.

The loan, carrying an interest equal to the three-month Libor reference rate plus 2.75%, must be repaid in seven years starting in the first quarter of 2019 and will be used for debt restructuring purposes, the government said.

Jadroplov will also use the ownership of four ships - the Peristil, Sveti Dujam, Solin and Bene - as collateral on the loan.

The Croatian state controls a 63.6% stake in the capital of Jadroplov through Croatia's centre for enterprise restructuring and privatisation, CERP.

($ = 0.881426 euro)