PM Plenkovic: Agrokor didn't give away its springs or farmland but had to provide loan collateral

Photo /Vijesti/2017/09 rujan/6 rujna/Bolnica Mostar.jpg

Croatian Prime Minister Andrej Plenkovic on Wednesday dismissed media speculation that the government's emergency administrator for the ailing food and retail concern Agrokor, Ante Ramljak, had given away Agrokor's water springs, farmland and valuable companies to American banks and fundswhen signing with them an agreement on a new loan for Agrokor, but he stressed that the loan required collateral.

"No," Plenkovic said when asked by reporters if Ramljak had transferred to American banks and funds Jamnica water springs and farmland owned by Belje, Vupik, PIK Vinkovci and Ledo, as a guarantee for the latest, EUR 480 million loan for Agrokor, as claimed by the print media.

"The latest loan has been used to pay debts to many suppliers and family-owned farms... That is a normal process, otherwise I don't know who would ever get a loan without giving some kind of guarantee," he added.

Plenkovic said that the "new trust" in the concern had been established owing to the adoption of a law on strategically important companies and appointment of its emergency administration, "which, in a very short period of time, made it possible for the ailing company to get new creditors and fresh financing."

The Croatian PM commented on the Agrokor case during his two-day visit to Bosnia and Herzegovina where on Tuesday he visited Livno, Siroki Brijeg and Mostar, where he met with representatives of state and local authorities.

Text: Hina