Dalic: Bill being drafted on how to bail out companies vital for Croatia's economy

Croatia's Economy and SMEs Minister Martina Dalic said on Friday that the government was preparing a legislative and institutional framework to offer assistance to companies important for the the country's economy that are unable to duly service their obligations, with the aim of maintaining the stability of the national economy.

"Prompted by the latest developments surrounding Agrokor, but by no means limiting ourselves to that case alone, and having in mind the fact that there are also other companies in Croatia that can trigger off risks for the entire economic system, the government is intensively working on preparing a legislative and institutional framework the purpose of which is to protect the stability of the entire Croatian economy in situations where companies vital for the economic system are unable to deal with their problems on their own," Dalic told a press conference.

The bill, which will be finalised soon, could potentially apply to any company in Croatia with more than 8,000 employees and with debt of more than a billion euro, she said.

The bill provides for the transformation of troubled companies and the fair treatment of all creditors.

It also ensures that suppliers are paid for the goods and services they have delivered, and that companies can do business while undergoing restructuring.

Dalic stressed that the bill was not being prepared specifically for Agrokor or its owner Ivica Todoric, reiterating that the responsibility for addressing the current difficulties in Agrokor lay with the management and owner of that food and retail group, and that a solution should be found for the sake of 40,000 Agrokor employees in Croatia and some 5,000 supplier companies doing business with Agrokor.

She went on to say that the future law did not mean that the state would take over such troubled companies.

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