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Press Release

15.01.16

Government decides to increase capital in Adria Airways

 

At today’s session, the Government of the Republic of Slovenia approved the annual plan for managing assets of the Slovenian Sovereign Holding in Adria Airways, which was approved by the SSH’s supervisory board on 11 January 2015. The management plan foresees the recapitalisation of the company by the Republic of Slovenia provided that a private investor injects fresh capital at the same time, and privatisation of the company.

In order to ensure the continued existence and operation of the company, Adria Airways must first be recapitalised. The generally assembly, which is to convene on 19 January, will decide on the capital increase. Because of the rules on government aid for recapitalisation, it will include a private investor that will buy out the shares owned by the Republic of Slovenia at a later stage. Recapitalisation together with the sale will ensure the further development and preservation of the Slovenian national carrier and other positive aspects arising from Slovenia’s international connections, including tourism revenues, their significance for the economy, and subsequent positive effects on suppliers, employees and business partners.

The sale with prior recapitalisation by the Republic of Slovenia and the participation of a private investor is a much more economical decision, which will mean lower costs for the government than liquidation or setting up a new airline.

The government expects SSH to complete the privatisation procedure openly and transparently, and to exclude risks of potentially prohibited state aid.

   

The government also approved the business and financial plan of the Slovene Enterprise Fund for 2016, when the fund will offer financial incentives totalling 131.96 million euros to micro, small and medium-sized companies, which is an increase of 30 per cent over last year. This will enable the fund to support some 1,300 companies.

   

The government also approved the regulation on the rehabilitation and restoration of forests following the natural disaster of glaze ice from the 2014–2020 Rural Development Programme. In accordance with the regulation, the funds will be distributed in the form of grants; 20,454,400 euros of public funds have been earmarked for the entire programme period. 


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