Croatia turns aid into shareholder loan
The Croatian government has adopted changes to its decision to grant 33.7 million euros to Croatia Airlines in an attempt to stabilise the carrier prior to its privatisation. The airline received the sum in two tranches, one last year and the other earlier this month. The Croatian government has said the capital injection will now be treated as a shareholder loan. The grace period on the loan has been set to two years with a fixed annual interest rate of 2%. The Ministry for Sea, Transport and Infrastructure said other terms and conditions will be negotiated with Croatia Airlines. The European Commission, which has strict guidelines on state aid, said last October it was “in close contact with Croatian authorities” after the government approved the aid package. The burden of the loan’s repayment will fall onto Croatia Airlines’ new owner, if the company is successfully privatised, as planned, by June of this year.
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