PM Plenkovic: Situation at Agrokor stabilised

Prime Minister Andrej Plenkovic said on Thursday that the emergency administration law prevented the Agrokor agricultural and food conglomerate from going bankrupt and causing a chain reaction, adding that conditions had been created in the last three months for its restructuring.

Plenkovic said that this morning the government had received a written report from emergency administrator Ante Ramljak and had discussed with him the first three months of his administration.

"We share the view that the government did what at that moment was the best for the economic stability of Croatia, for the stability of our financial system. The adoption of the emergency administration law prevented a possible bankruptcy of the company and chain reactions to the Croatian economy, suppliers and jobs," Plenkovic said at the start of a discussion on the report on the implementation of the law on emergency administration proceedings in companies of systemic significance to Croatia.

The PM said that in slightly over three months the emergency administration had managed to stabilise the situation at Agrokor, pay out wages, keep jobs, consolidate business and secure fresh liquidity from creditors. He expressed hope that this would be a good precondition for the forthcoming restructuring process, which will focus on the retail segment, food companies and agricultural production.

Plenkovic said that the judicial authorities were carrying out their activities "which will produce results over a certain period of time, but it is not for the government to comment on that."

On leaving the government building, Ramljak told the press that the conglomerate was benefiting from the tourist season, that its agricultural companies were seeing considerable growth and that the Konzum retail chain was awaiting further restructuring.

Asked what would happen in the period ahead, Ramljak said that Agrokor would be restructured and the focus would be on profitability. He said he expected Konzum to break even at the end of the year.

Commenting on criticisms of the roll-up credit model for Agrokor, Ramljak said that this model was in accordance with the law. "Over 20 banks are participating in this loan. I think that each of these banks has very good legal advisers and they made their assessments. You will have to ask Sberbank why it is not participating."

Ramljak said it had not yet been decided which companies would be sold off as part of the restructuring process and he could not say at this point how much debt would be written off.

Text: Hina

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