The Croatian government on Thursday announced they would invest 296 million kuna (€39 million) to recapitalize the country's state-owned flag carrier Croatia Airlines by issuing 29.6 million ordinary shares at the nominal price of 10 kuna per share.

“The recapitalization of Croatia Airlines will preserve the economic activity of the company and ensure sufficient liquidity,” Minister of the Sea, Transport and Infrastructure, Oleg Butkovic, said in a televised cabinet meeting.

The total amount will be paid by the government, which already holds 98.76 percent of the company. Once the company’s general assembly okays the plan in a meeting later on Thursday, the company’s share capital will increase from 627.9 million (€83 million) to 923.9 million (€122 million).

(€1 = 7.54 kuna)