Adn who will pay "Zastava’s" debt to "Fiat" of €11m ?

After the signing of the contract on assembling of "punto", Kragujevac-based "Zastava" owes €11m to Italian “Fiat".

In order to settle the debt prior to end of 2005 "Zastava" plans to sell its property in the republics of former Yugoslavia.

According to the ad published in newspaper "Politika", "Zastava" sells right to use of real estates in Croatia, whereas classical auction is being prepared for the sale of holiday hostel in Macedonia, near the Ohrid lake.

"Zastava" has the business building, car repair service, warehouse and hall for assembling of vehicles in Zagreb. It also has hotel “Dva lava” on Brač island, but the problem lies in the fact that Kragujevac-based factory has been long gone from the ownership registries.

Zagreb-based facilities cost about €3.3m, while hotel on Brač costs about €650,000.

The earned money could be used for repayment of one half of the remaining debt to "Fiat" and, in case it is not fulfilled until the end of 2005, the debt to Torino-based giant will grow again to €43m.