Basic Elements of Agrokor Settlement Agreed

Total Croatia News

ZAGREB, April 10, 2018 – Prime Minister Andrej Plenković on Tuesday underscored that the process of defining the fundamental elements of the settlement in the emergency administration procedure in Agrokor had been completed, adding that this well-conducted and structured process prevented an economic and financial crisis.

“A year after the procedure was launched, in line with the law and adequate legal framework that was proposed by the Croatian government and adopted by parliament (…) now, looking in hindsight, we have achieved several fundamental objectives for which the procedure was initiated in the first place,” Plenković told a press conference after a meeting with the emergency administration in the ailing food and retail conglomerate and representatives of the Interim Creditors’ Council.

He underscored that the fundamental objective of preventing an economic and financial crisis had been achieved which would have undoubtedly been felt not only by Agrokor but by the entire Croatian economy, numerous suppliers, jobs, state budget, difficulties in the distribution chain and in particular with regard to the tourism season which was the best ever last year.

“All that was prevented with a quality and structured process, thanks to the law on the emergency administration and thanks to the good will and responsibility of all stakeholders in the process,” he said.

According to him, the key word that summarises everything that has been done over the past year is – trust. “I am talking about the trust of suppliers who have continued to deliver goods, the trust of financial creditors or creditors who were prepared to provide fresh finances and liquidity, the trust of all stakeholders who were involved in this process that the state had created a reliable framework for the emergency administration to know which way to go, for consultants to work in accordance with the best international practice and standards (…),” he underscored.

He noted that the presidents of neighbouring countries were very pleased with the way Croatia managed to ensure that the crisis didn’t spill over to their economies.

He underscored that all that showed that, with its approach, the government acted responsibly and in good faith for the Croatian economy, jobs and the future of Croatian entrepreneurs and companies.

“We will learn a lesson from this story. We will do our best so that this scenario is never repeated again and that is particularly important for all monitoring mechanisms and it is particularly important for the transformative effect on the way business operates in Croatia – in accordance with the law, legal deadlines, paying dues, mutual dependence of individual companies within a particular company and outside it,” he claimed.

Plenković said he had three months left to finalise a legal text with all stakeholders, particularly with their legal experts and for a settlement to be adopted by the Permanent Creditors’ Council.


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