Government visits Đuro Đaković in Slavonski Brod

The company, which produces industrial equipment and heavy machinery, today received the first half of a 300 million kuna government-backed loan designed to get the company back on its feet.

Prime Minister Andrej Plenković said the government guarantee was designed to give a helping hand to a company that boasts a long and proud tradition. He said the immediate priority was for Đuro Đaković to continue producing wagons for clients in Western Europe.

The prime minister also commented on the production of military vehicles at the plant, saying that he hoped that in the coming years the Croatian Ministry of Defence would become one of the company's main clients.

Earlier in the day, Economy Minister Darko Horvat told reporters after a meeting of the inner cabinet that the company would use the 150 million kuna loan to pay a part of its financial obligations.

"... a part of the debt to suppliers will be paid, as will debts to the state, and the company will get an opportunity to buy goods and materials and carry out three existing contracts, which are expected to secure the company additional liquidity in the amount of 128 million kuna by the end of April," Horvat said, adding that the company did have prospects but that it had to make a program for its restructuring, which would have to be approved by the European Commission.

The government last week decided to provide a state guarantee for a 300 million kuna loan for the Đuro Đaković group of companies. A total of 150 million is intended to help unblock the group's account, launch production and enable the execution of existing contracts, as well as the payment of liabilities to financial institutions and the state.

The remaining 150 million kuna will be used to cover operating costs for production in Đuro Đaković Special Vehicles.

Source: HRT