PM: Government's role in containing the Agrokor crisis was crucial for the country's economic and financial stability

Prime Minister Andrej Plenkovic said at a government session on Thursday that consultations were under way to appoint a new emergency administrator for the heavily indebted Agrokor food and retail conglomerate, and that the government would very soon propose to the Commercial Court the person to succeed Ante Ramljak, who resigned as Agrokor's emergency administrator on Wednesday, as well as his deputy.

Plenkovic said that this would probably happen next week after all necessary consultations were completed, and that this time the government would propose a deputy emergency administrator as well.

He reiterated that the government's role in containing the Agrokor crisis last year was crucial for the country's economic and financial stability.

"Croatia did not experience an economic tsunami and it could have. Those who keep calling for political destabilisation must be aware that by doing so, they are threatening the stability of the national economy and the financial system," said the PM.

"Some people don't seem to understand that without political stability and the normal functioning of the government and parliament there can be no necessary calm to complete this economic and financial process whose sole aim is to preserve jobs and keep Agrokor companies operating normally, and consequently keep their suppliers, small family farms and all those connected with Agrokor, not only in Croatia but in the rest of the region as well, operating," said Plenkovic.

Agrokor confirmed on Wednesday that its emergency administrator Ramljak had tendered his irrevocable resignation to PM Plenkovic so as not to become an obstacle to the reaching of a settlement with the creditors.

Ramljak came under pressure in late January, when the media reported that he hired his former employer, Texo Management, as a consultant in Agrokor, for which the company receives nearly HRK 250,000 a week. This prompted public debate on the consultants' fees and Ramljak's possible conflict of interest.

Under the law on emergency administration in companies of systemic importance for Croatia, the Zagreb Commercial Court can sack an emergency administrator and appoint a new one at any time at the government's proposal. This court is also the only body competent for supervising an emergency administrator.

The law specifies that the emergency administrator can be anyone who meets the criteria for a board member pursuant to the Companies Act. They can have deputies who are also appointed by the court at the government's proposal.

Prime Minister Andrej Plenkovic said on Thursday that the government planned to increase children's allowances and co-funding for children's daycare centres as part of measures for demographic revitalisation.

Children's allowances will be increased as of July 1 and HRK 67 million has been earmarked for co-financing of the construction and reconstruction of children's daycare centres, Plenkovic said at a cabinet meeting while speaking of measures discussed at a recent meeting of the Demographic Revitalisation Council.

The Ministry of Labour and Pension System, in cooperation with the Ministry of Demography, Family, Youth and Social Policy, will launch an HRK 300 million call for the employment of pre-school teachers and other supporting staff necessary for two-shift work in children's daycare centres, which will be supported with funds from the European Social Fund. The call will be issued on March 8, International Women's Day.

Plenkovic said that the operating hours of children's daycare centres would be extended in many towns and local government units. "I expect the Ministry for Demography to continue putting forward concrete proposals and other departments to get involved in developing the demographic policy," he said.

Text: Hina

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