he Djuro Djakovic metal and mechanical engineering group will get a state guarantee this week for a loan that will enable its further operation, Economy Minister Darko Horvat said on Monday.

“Djuro Djakovic will get a state guarantee this week. I am certain that the financial injection, which is in the final stage of preparation, will put wind in the company’s sails. The new management is in talks with suppliers on debt repayment so that the company’s account can be unblocked,” Horvat told reporters ahead of a Croatian-Albanian business forum in Zagreb.

Horvat said that this was the last chance for Djuro Djakovic to transform into a modern, market-based company and that he was certain that this was “a good thing”.

Horvat said in late December that a loan of about HRK 150 million (€20 million), which the government is ready to back with a state guarantee, was a short-term solution for this Slavonski Brod-based company.