June 19 (SeeNews) - The Croatian government adopted a decision confirming its readiness to issue state guarantees to three shipyards - Brodotrogir Cruise, Uljanik Brodogradnja 1856 and MKN Yachts - in support of the construction of new ships, it said.
Brodotrogir Cruise has requested the issuance of state guarantees in order to secure forward payments for the construction of two polar cruiser ships for US firms Delos Cruise Hull 1 2019 LLC and Delos Cruise Hull 2 2019 LLC, controlled by US investment company Delos Shipping LLC, economy minister Darko Hrvat said in a government statement on Thursday.
"The shipyard is seeking state guarantees of 24.96 million euro ($27.97 million) per each ship, which makes up 80% of the total forward payments, or 64% of the ships' sales price," Horvat said.
He added that each ship will cost 39 million euro, or 78 million euro in total, with the buyer paying forward 80% of the agreed price, or 31.2 million euro per ship, under the condition that the shipyard provides the buyer with a bank guarantee.
At the same time, newly-established Uljanik Brodogradnja 1856 has asked the economy ministry for state guarantees for a loan of up to 32.5 million kuna ($4.8 million/4.3 million euro) that will be exclusively used for the launch of business and production activities at the new company, Horvat said.
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, Horvat said that Rijeka-based MKM Yachts, the local unit of Australian luxury cruise and tour services provider Scenic Group, has also asked for the issuance of state guarantees that will cover 80% of a planned 100 euro loan.
The loan will finance the agreed construction of a ship for another Scenic subsidiary - Malta-based PEC 2.
The decision adopted by the government on Thursday authorises the economy and finance ministry to begin the procedures of issuing the above state guarantees, Horvat said.
(1 euro = 7.5723 kuna)