Government set to restart shipbuilding in Pula through Uljanik Brodogradnja 1856

The government on Thursday adopted a conclusion expressing its readiness to get involved in creating conditions to restart shipbuilding in the northern coastal city of Pula through the Uljanik Brodogradnja 1856 company.

The conclusion is based on documents provided by the receiver for Uljanik d.d., Marija Ruzic, Economy Minister Darko Horvat said.

He recalled that at its session of March 26 this year the government had approved the transfer of the concession for the commercial use of the port of Pula for shipbuilding purposes from Uljanik d.d., which has filed for bankruptcy, to Uljanik Brodogradnja 1856.

He noted that Uljanik Brodogradnja 1856 is not a legal successor to the bankrupt companies Uljanik d.d. and Uljanik Brodogradiliste d.d., but a legal entity that has the option of putting the coastal land and shipbuilding equipment to use and hiring some of the former workers of the Uljanik Group.

The equipment of Uljanik Brodogradiliste d.d. is estimated at HRK 50.36 million, and the Ministry of Finance, as the largest separate creditor, has been tasked with taking charge of those assets and recapitalising Uljanik Brodogradnja 1856. 

The other separate creditors which are majority state-owned  have been recommended to consider increasing the equity of Uljanik Brodogradnja 1856 with assets to which they are entitled as part of the bankruptcy settlement process, in which way they would be able to acquire a stake in the company.

Bankruptcy proceedings for Uljanik d.d. and Uljanik Brodogradiliste opened in May 2019.

In the case of Uljanik d.d., 225 creditors lodged claims in the total amount of HRK 5.1 billion, and at an examination hearing claims were set at HRK 4.86 billion. The Ministry of Finance is the single largest creditor with claims of HRK 3.2 billion and is entitled to a separate settlement.

As for Uljanik Brodogradiliste d.d., 2,448 creditors lodged claims for a total of HRK 3.1 billion. The Ministry of Finance is the single largest creditor with claims set at HRK 1.2 billion.

The government also gave permission for the Rijeka-based 3. Maj shipyard to sub-concession part of the port land to the company MKM Yachts d.o.o. for ten years, saying that this would open a new market for luxury passenger vessels.

MKM Yachts is a newly-established company in Croatia indirectly owned by Glen Moroney, the founder and owner of the Scenic Group, a leading global travel company specialising in luxury and exotic trips. The company is interested in building a series of cruise ships at the 3. Maj shipyard. The deadline for the conclusion of the investment, worth slightly over €3 million, is the end of 2021, according to the government.

Prime Minister Andrej Plenkovic said that with these two decisions the government had sent a strong message to the shipyards in Rijeka and Pula.

Croatia to enter EC SURE scheme for mitigating unemployment risks

The Croatian government on Thursday authorised the Finance Minister to sign an agreement on voluntary guarantees between Croatia and the European Commission  considering the new instrument for temporary Support to mitigate Unemployment Risks in an Emergency (SURE).

The Commission has recently proposed the SURE instrument allowing for financial aid of up to EUR 100 billion in the form of favourable loans from the EU to member states affected by the COVID-19 pandemic and the consequent corona crisis.

Explaining the purpose of the instrument, Finance Minister Zdravko Maric said that by signing the €95.7 million guarantee agreement Croatia would be entitled to four times higher amounts of aid under this scheme.

The agreement will be signed with the EC based on the Council regulation on the establishment of the SURE instrument after the outbreak of the novel coronavirus disease.

SURE is one of the three safety nets whose total value is put at €540 billion, which will be allocated for job preservation and as assistance to enterprises and member states.

The SURE instrument will be available after all member states provide their respective guarantees according to their share in the EU's Gross National Income.

One of its aims is to help in the implementation of the shortened working hours scheme, Maric added.

At the beginning of today's cabinet meeting, Prime Minister Andrej Plenkovic said that the job-preservation measures taken by the Croatian government had produced "extremely good results".

In April the grants of HRK 4,000 per employee were used by 97,000 employers for more than 550,000 workers on their payrolls. In March, 87,000 employers used those grants for about 500,000 employees.

The government has to date allocated HRK 5.5 billion for that purpose.

Labour Minister Josip Aladrovic said that the amount could rise to HRK 8.6 billion until the end of this month.

In the last 14 days unemployment has decreased, he added.

Text: Hina

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