PM Plenkovic: Banks to ensure loan of EUR 150 mln to Agrokor this week

Prime Minister Andrej Plenkovic and representatives of the coordinating committee of Agrokor's financial creditors held a meeting on Monday after which Plenkovic told the press that the lenders supported the legislative and institutional framework for the debt-laden private group Agrokor and that they would ensure an installment of up to 150 million euros to the group this week to improve its cash-tight situation.

The coordinating committee of Agrokor's financial creditors comprises Erste Bank, Privredna Banka Zagreb, Raiffeisenbank Austria, Sberbank, VTB Bank (Austria) AG and Zagrebacka Banka.

The representatives of the banks support the legislative and institutional framework and also offer support to Ante Ramljak, who has been appointed receiver to Agrokor, Plenkovic said after the talks.

The banks are ready to give a new loan, that is fresh liquidity to Agrokor, so as to enable this ailing retail and food concern to pay its workers and suppliers and help the group to function.

"The amount is up to 150 million euros. Later in the day, the contract (on the loan) will be hammered out," said Plenkovic.

"We will make use of all mechanisms to find a solution," the premier said.

Addressing the press on behalf of the coordinating committee, Zagrebacka Banka management board chair Miljenko Zivaljic said that the banks supported the programme for restructuring Agrokor and that they would inject fresh capital in the amount of 150 million euros.

Zivaljic said that the standstill agreement between Agrokor and the lenders was no longer in force wit the activation of the so-called Lex Agrokor.

The appointment of Ramljak as officer in charge of restructuring the debt-laden group in the next months was done in compliance with the law which was adopted last Thursday with the aim of protecting the economy from the fallout of big company failures such as Agrokor.

Text: Hina

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