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Svea must withhold from paying dividends for three years and "not overdo" with wages, Economy Minister Stanko Stepišnik said about the provision that the wage bill must be "sustainable" in the next three-year period.

The company will also step up exports. If it does not meet these targets, the guarantee is "the last thing the government can do" and bankruptcy will follow, he said.

The Zagorje municipality, on the other hand, must forfeit the local real estate tax for a three-year period and help in finding jobs for 180 redundant workers out of the current 310.

The loan will be secured with a lien on Svea real estate, while the company's management will have to commit to use the money solely to restructure the company, not for new investments.

The management has been given three months to draw up a restructuring plan.

The decision comes after the majority shareholder, Svea inženiring, decided to transfer its shares onto the state for free in exchange for the company getting aid.

The government's reluctance to extend aid prompted Svea workers to launch an all-out strike on Monday.

They threatened to file for receivership over unpaid wages if the aid is not forthcoming.