State Provides Croatian Jadrolinija Ferry Company With Cash Injection

By 17 December 2021

December the 17th, 2021 - The state has provided the Croatian Jadrolinija ferry company with a very handsome cash injection of 52 million kuna in order to try to get its severely hit liquidity and profitability back up given that the company has also fallen victim to the pandemic.

As Poslovni Dnevnik/Suzana Varosanec writes, another victim of the global coronavirus pandemic has been the liquidity and stable business of the Croatian Jadrolinija ferry company, which the government saved with a recently made decision. It intervened with approved state aid of a massive 52 million kuna for the maritime company's uncovered fixed costs.

This will prevent the majority of negative effects being felt by the population and the economy, the maritime and tourism industries will feel it indirectly, while the positive effects will indirectly spread to other industries, the decision claimed.

The money is provided by the revised state budget for 2021 and projections for 2022 and 2023, within the position of the Ministry of Maritime Affairs, Transport and Infrastructure, the programme of state aid to the maritime sector, transport, transport infrastructure in the coronavirus pandemic, and subsidies to public companies facing ongoing difficulties. The aforementioned ministry has reported state aid to the European Commission (EC) and will allegedly then need to prove the compatibility of state aid with the rules on it.

The fact that the Croatian Jadrolinija ferry company is proverbially ''burning'', which was the word used recently, is an indication of the need for the urgent implementation of measures, and it has been pointed out that state aid should be granted by the end of 2021 to address the needs of Jadrolinija, in terms of immediate liquidity that has emerged in recent months due to the pandemic, when normal market functioning was severely disrupted by this public health crisis.

According to Minister Oleg Butkovic, this has all resulted in the lack of funds for regular business and maintenance operations for this company.

For more, check out our dedicated business section.

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