Government of Croatia: Aluminum's economic justification to be achieved with a change in business model

ZAGREB, (Patria) - The Croatian government, as a minority shareholder, expresses concern and regret that such a turn of events has occurred in one of the strategic economic entities for the Croatian people in the Federation of BiH, but also for the economic development of the entire Bosnia and Herzegovina.

This was announced on Friday by the Croatian Government, after Aluminij from Mostar ceased operations on Wednesday due to multi-million dollar debts.

According to data from the Center for Restructuring and Sale, the Republic of Croatia holds 22,814 shares, which make up 12% of the Company's share capital (which came to Croatia based on investments in the reconstruction of the war-destroyed electrolysis plant).

“The Republic of Croatia, through its representative on the Supervisory Board of Aluminij, received information about the talks held by representatives of the Government of the Federation of BiH and the Management of Aluminij d.d. with potential strategic partners. At the same time, representatives of the Croatian Government, before the next session of the Assembly of Aluminij d.d., will hold consultations with representatives of the Company's Management and the Government of the Federation of BiH as the largest single owner (holding 44% of the shares), in order to consider possible solutions for the challenges facing Mostar's Aluminij,” the HR Government's statement reads.
 
The Croatian Government, as a minority shareholder, believes that market and economically justified and competitive production in Aluminij can be achieved with a significant change in the current business model, in line with the best European business practices. 

“The implementation of these measures requires the support of the Government of the Federation of BiH.”

The Democratic Front (DF) had previously called for a joint session of the Croatian Government and the Government of the FBiH, writes NAP.