Croatian government provides Uljanik Shipyard with lifeline

The financially-troubled Uljanik Shipyard has been granted a state loan guarantee of up to €96 million (US$117 million) by the Croatian Government to restructure and continue its operations.

The loan guarantee, which requires repayment in six months and the shipyard to find a “strategic partner”, is subject to approval from the European Commission.

Croatian media reports said the shipyard missed payroll in December, prompting unions to consider stopping work if salaries were not paid.

The guarantee would provide the necessary financing to continue operation until the end of April.

Founded in 1856 in the bay of Pula as a shipyard of the Austro-Hungarian navy, Uljanik has about 2,650 employees.

Scenic Eclipse is currently under construction at the Croatian yard, and is set for an August delivery for the Australian cruise company Scenic.