The caretaker government on Wednesday held a conference call at which it decided to grant collateral in the amount of EUR 22.9 million to the Hrvatska Brodogradnja Trogir shipbuilding company, owned by the Brodotrogir shipyard.

The state collateral is to be issued to the Croatian Bank for Reconstruction and Development (HBOR) or other commercial banks in the country or abroad to grant direct or indirect bank guarantees for paying back an advance payment to the client Arctech Helsinki Shipyard OY for the construction of the front part of an oil tanker in the amount of EUR 22.9 million plus fees and interest.

Brodotrogir requested government guarantees on the basis of its restructuring programme and an agreement on the sale and transfer of shares whereby the state has pledged to grant, once the criteria are met, collateral to insure clients' advance payments for new vessels in the total amount of HRK 20 million.

According to data made available by Brodotrogir, state support in guarantees approved so far, including collateral approved today, amounts to HRK 10.56 million.

Hrvatska Brodogradnja Trogir signed a contract with the Finnish client in July this year for the construction of a part of an oil tanker with a carrying capacity of 44,000 metric tonnes.

The contractual price of the vessel is EUR 28.66 million and the client is paying for it in advance payments of EUR 22.9 million, while the remaining 5.73 million will be paid after the delivery.

Brodotrogir currently uses only one state guarantee in the amount of USD 30.1 million, to be repaid this month, and has eight orders worth around USD 152.6 million in its book of orders.

Brodotrogir Group ended the year 2015 with a profit of HRK 41.6 million, the government said in its decision on granting the shipyard state collateral.

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