“The European Commission has approved state guarantees for a 96 million euro loan ($117.71 million) for the cash-strapped Uljanik shipyard. The European Commission confirmed the guarantee did not violate EU state subsidy rules.

Commissioner Margrethe Vestager, in charge of competition policy confirmed the news.  ‘The Croatian State guarantee will help the Uljanik shipyard to continue operating and maintain 1,800 jobs, while they work out a sound restructuring strategy to ensure its future. We approved it today. The restructuring plan must return the company to long-term viability without continued public support, to preserve jobs in Istria on a sustainable basis,’ Vestager said.

The measure will enable Uljanik Shipyard to pay wages, suppliers and other urgent liabilities over the next months and prevent it from going out of business, while preparing a restructuring plan, the Commission said in a statement.

Economy Minister Martina Dalić was pleased with the news. ‘The European Commission’s decision will make it posible to issue guarantees for a rescue loan in the amount of 96 milion euros. The loan that Uljanik will receive on the basis of these guarantees will allow the company to make payroll over the next few month and pay its suppliers,’ Dalic said.” (Voice of Croatia)