Andrej Plenković speaks about the crisis of Croatia’s largest privately-owned company.
Croatian Prime Minister Andrej Plenković said on Saturday evening that the government’s goal was for Agrokor and its owner to ensure their own liquidity, to implement a restructuring plan, and ultimately to achieve a long-term sustainability of the whole group, reports RTL on March 26, 2017.
He added that, following practices of other EU member states, the Croatian government was looking into how it could help the consolidation of the Croatian financial and economic system. He recalled that Agrokor has 60,000 employees and numerous suppliers, adding that the company was “extremely important for the functioning of the Croatian economy and the financial system”.
We want to help the processes that will ensure business security for employees, suppliers and creditors, and the functioning of the company, said the Prime Minister, adding that the government was acting responsibly. “All our messages and all our activities have been professional, discrete and at no time did we encourage any processes in the capital markets or in the business community that could be characterized as aggravating the situation, which is enough complex as it is”, he noted. He said that, as a responsible government, they wanted to draft appropriate legislative and institutional framework in the event that it becomes necessary for the state to intervene.
Asked whether it was possible that Agrokor could be broken up into dozens of smaller companies, the Prime Minister said that there had been no discussion about it. “No one can know that at this point”, he said, adding that the government’s goal was “to ensure good restructuring of the company, and what that will ultimately be, it is not up to me or the government to decide”.
Asked about his position on the future of Ivica Todorić, Agrokor’s majority owner, Plenković said that Todorić was the owner of the company who invested his whole life in such a large project, adding that he was certain that Todorić has the primary responsibility for the future of the company. “I believe he is acting in the best interest of what he has created”, said the Prime Minister. “The company at this time, just like any other company in the market, has all the possibilities to starts the restructuring process for its own benefit”, concluded Plenković, stressing that the Croatian government was there to take care of the interests of Croatian state and economic and financial system.
Plenković confirmed that MOST had been informed about the new law on systemically important companies. “Of course, the draft law still needs to be checked and we need to consult with experts”, he said, pointing out that MOST had been informed about all the activities which the government is implementing regarding the Agrokor crisis.
