Croatian government to help prevent Croatia Airlines' bankruptcy with EUR 33.7 million

The Croatian government has approved a sum of HRK 100 million (EUR 13.5 million) from budget reserves for Croatia Airlines (CA) as part of securing the requirements for a capital increase at the national airline carrier through the stabilization of business operations.

This is the result of the government’s last week’s decision, that is, the first part of an advanced payment to the benefit of CA of the total of HRK 250 million (EUR 33.7 million).

The remaining amount is to be paid in 2020, Poslovni Dnevnik reports.

– I am not happy that it has come to this, as this is the sort of situation where everything’s done at the last minute – said Croatian Deputy Prime Minister and Finance Minister Zdravko Maric, as reported by Hina.

He added that the role of CA in Croatia’s tourism and the country’s international connections was well known and that the company and Croatian airports had great potential.

The decision on saving CA through a capital increase is yet to be explained by the Croatian government to the European Commission, as Jutarnji List reported last week, noting that the company would have gone into bankruptcy in three months without the capital increase.

Vlada Republike Hrvatske

Croatia Airlines Hrvatska zrakoplovna luka d.d. Zagreb

EUROPEAN COMMISSION Bruxelles

Ministarstvo finansija Republike Hrvatske Zagreb

Government of Croatia

Ministry of Finance Croatia

Croatia Airlines

European Commission

Zdravko Marić

capital increase

Croatian national airline carrier