May 2 (SeeNews) - The European Commission said on Wednesday it has found that Croatia's plans for the restructuring of shipping company Jadroplov comply with the EU state aid rules.
The Commission said in a statement it has cleared a subsidy and two state guarantees on bank loans for a total state support of 105.6 million kuna ($17.1 million/14.2 million euro).
Jadroplov, which is based in Split, has suffered from reduced volumes and falling prices in worldwide trade of dry bulk cargo. The company has started carrying out a comprehensive restructuring programme aimed at reducing costs, focusing on core business and alleviating the financial pressure stemming from high indebtedness, the Commission explained.
The EU executive noted it has found that Jadroplov's restructuring plan will enable the company to become viable in the long term without continued state support.
Jadroplov will make a significant own contribution to the cost of restructuring of 144.9 million kuna, in particular by securing financing from the private market and through asset sales.
"The Commission therefore concluded that the restructuring plan was in line with EU state aid rules, in particular the 2014 Rescue and Restructuring Guidelines", it said.
(1 euro=7.41343 kuna)