Communication
The aim of the protection of market competition is primarily to create benefits for consumers and equal conditions for all entrepreneurs on the market, who, acting in accordance with the existing rules and competing on the market with the quality, price and innovation of their products and services, contribute to the overall development of the economy.
Brodotrogir restructuring plan approved
Croatian Competition Agency approved the State aid for restructuring contained in the Restructuring plan for Brodotrogir d.d. shipyard drafted by the company Jadranska ulaganja d.o.o. The restructuring aid in the form of grants, State guarantees, write-offs and debt assumption by the Government of the Republic of Croatia is worth more than 2.8 billion Kuna and covers the period from 1 March 2006 to the end of 2016. The restructuring costs under the Restructuring plan are established at the level of more than 4.6 billion Kuna, whereas own contribution of the shipyard or the investor is 1.8 billion Kuna (40 %).
The positive decision of the CCA also contains conditions and deadlines that must be met in the implementation of the Restructuring plan, such as compensatory measures in the form of capacities reduction of not less than 15 101 CGT and total annual production of up to 54.955 CGT. Production capacities must be reduced within the period of one year following the day of the conclusion of the privatization contract. In line with the agreed provisions of the Accession Treaty, the Ministry of the Economy, Labour and Entrepreneurship must supply the CCA and the Commission with six-monthly and annual reports concerning the restructuring, no later than 15 January and 15 July each year until the end of the restructuring period. No later than 30 April of the current year the ministry must also submit to the CCA annual financial statements of Brodotrogir for the previous year.
It must be noted that under the rules on restructuring aid in effect Brodotrogir shipyard may not receive any other aid but the aid referred to in the Restructuring plan. Ten years during which the aid beneficiary may not receive any additional restructuring aid starts on the day of the conclusion of the privatization contract.
In the same session of 27 September the Council approved the rescue aid in the amount of USD 57.7 million to the undertaking Croatia Airlines. The rescue aid in question will settle a debt for the previously contracted purchase of four Airbus aircrafts. Rescue aid has been approved for the period of six months in which Croatia Airlines must develop a restructuring plan to remedy those difficulties or return the received State aid.