Croatia's Jadrolinija to borrow 17.4 mln euro to buy ships

Erste&Steiermaerkische Bank will provide a loan of 6.2 million euro that will finance 80% of the purchase price of the Sveti Duje ro-ro passenger vessel, transport minister Oleg Butkovic told a weekly cabinet session on Thursday, as heard in an audio file published by the government.

Erste&Steiermaerkische Bank will grant another loan, worth 1.6 million euro, which will cover 80% of the cost of the Unije passenger ship.

OTP Banka will allocate the third loan, worth 9.6 million euro, which will cover 80% of the cost of the Oliver ro-ro passenger ship.

The loans will have a ten-year maturity and fixed interest rates of 4.02%, 3.75% and 4.48% per year.

The company will pay the remaining 20% of the price from own resources. The purchase is in line with Jadrolinija's plans to upgrade its fleet.

Jadrolinija acquired the three ships from Greek shipowners Livadas Shipping, Star Gem Maritime Company, and Horizon Shipping Company at the end of last year, and will begin operating them this year.

($ = 0.915 euro)