The government today provided guarantees for HŽ’s loan obligation totaling 1.18 billion kuna, which will be used for the restructuring of HŽ Cargo, HŽ Passenger Transport, and HŽ Infrastructure.
HŽ Cargo is taking a loan of 345 million kuna for financial consolidation and the management of surplus employees, HŽ Passenger Transport 217 million kuna for the same purpose, and HŽ Infrastructure 170 million kuna for liquidity financing, along with an additional 450 million kuna for investments.
This 450 million will be invested in the modernization and construction of HŽ’s infrastructure, including the completion of projects from previous periods, capital repairs and reconstruction of stations and stops, new projects for infrastructure renewal, preparation of project and other documentation, as well as land acquisition and compensation for the preparation of EU projects.
Deputy Prime Minister for Economy and Minister of Regional Development and EU Funds Branko Grčić emphasized that this is a serious reform move, as 1.18 billion kuna will be directly invested in the restructuring of the entire HŽ operation.
Of that money, only 250 million is allocated for the management of surplus workers, while the rest goes directly into development, new projects, and liquidity financing, Grčić noted, assessing that this is a very significant intervention in the restructuring of public enterprises.
