Croatia shipyards privatization to begin

Croatia has decided to call tenders for the privatization of its shipyards, except for Uljanik, in the second half of November, said Minister of economy Damir Polancec. The offering price of the shipyards is set at HRK 1 per share. Employees of the shipyards will be able to buy up to a 25% stake by investing cash. In August, the government announced that the privatization of the shipyards would be launched at the end of 2008. However, the European Union (EU) has urged Croatia to begin restructuring of the shipyards as well as to immediately start with the privatization phase.

Restructuring of shipyards is also necessary for Croatia in order to complete negotiation talks with the European Union (EU) by the autumn of 2009 and join the bloc in 2012. The EU has repeatedly asked the country to cut subsidies to the sector so as to comply with competition rules in the bloc, whereas the International Monetary Fund has urged the restructuring of the shipyards to cut budget spending.