Croatia Airlines to receive Kn600m through capital injection and loan

Participants in a Croatia Airlines extraordinary assembly have approved an increase in the airline’s share capital through the issue of new shares to the Croatian government. The decision was made during the assembly on Monday. Under the measure 35m ordinary shares will be issued, with a nominal value of Kn10 each, increasing the share capital by Kn350m. Croatia’s government, through the ministry of sea, transport and infrastructure, has approved not only the capital increase but also a shareholder loan to the carrier amounting to Kn250m. This brings the overall level of support to the carrier to Kn600m ($97m). The government says the combination of share capital and loan is intended to “solve liquidity problems” suffered by the airline as a result of the air transport crisis. The government says the decision will “ensure the necessary financial stabilisation” of the airline in the wake of the pandemic.<br/>