As Poslovni Dnevnik writes on the 3rd of December, 2018, over the past five years, ENNA has become a regionally recognisable Croatian company, strongly positioned in the field of energy, logistics, distribution and infrastructure, making a name for itself as a very serious, integrated logistic operator unique in the region.

While news about the emigration from Croatia and especially from Slavonia continues to depress the masses everyday, for the Vukovar-based Energia naturalis group (ENNA) in 2018, positive news about new investments and good business results came about. Engaged in the energy sector, the company decided to take advantage of the plethora of benefits of the common European energy market which opened up to Croatia after joining the European Union. They spent years learning about other markets and were intensively preparing, and the results of trade on the aforementioned common European market came in 2017, and eventually reflected in some excellent business results.

The headquarters of ENNA lies in the Eastern Croatian city of Vukovar, and it continues to successfully operate through companies located in Hungary, Switzerland, Bosnia and Herzegovina, Serbia, and Slovenia.

Their success is based primarily on a wealth of knowledge, this young and ambitious team are oriented towards the digitalisation of the processes that take place within the company. In a way, ENNA represents a new generation on the Croatian business scene, recognising opportunities in a liberalised and growing integrated common European market. Thanks to this, this Croatian company achieved an incredibly impressive 1.2 billion euro in consolidated revenues last year.

Over the past two years, ENNA has invested more than 78 million euro into its business, strategically deciding on investments which make the most out of the synergistic potential within their own company portfolio. This year, they have continued to invest in rail freight and in the Port of Ploče, ESCO, various renewable energy sources, and energy trading, in which they remain the most successful. The ENNA ESCO company is currently completing the energetic reconstruction of a general hospital in Varaždin, and the energetic renewal of the police academy building in Zagreb is still ongoing. At the same time, in the Vukovar economic zone, the cogeneration plant for the production of electricity for biomass - ENNA biomass Vukovar and the new PPD business building, are now being completed.

The confirmation of their serious position is certainly proven by the collaboration with globally successful foreign partners. This Vukovar-based Croatian company has cooperated with VTTI, one of the largest operators and owners of oil storage terminals in the world, with Gazprom in the natural gas trade, and with INA, they're developing a strategic partnership in the Petrokemija recapitalisation project.

The ENNA Group is in an intense digitalization process, with particular attention being paid to the education of its employees, through its own education and training system.

The real core of Energia naturalis is a PPD group that deals with the import, sale, supply and continued distribution of natural gas, and that story is one of seventeen long years of unwavering persistence.

As stated, that story started about seventeen years ago, PPD has been operating since 2001 and its beginnings are related to obtaining gas concessions in the town of Vukovar and nine municipalities in the wider area of Vukovar-Srijem County. The result is them becoming the 100 percent owner(s) of this high quality distribution network in a country that is entirely built on private investment.

Their capital was already over 100 million kuna, while their annual income was 50 million kuna. Over the last ten years, the company has managed to gain more than 13,000 permanent customers. The opening of the gas market, marked up as one of the conditions for Croatia's accession to the European Union, finally occurred in 2012, with Croatia joining the bloc the following year. PPD welcomed the move, armed with the knowledge and experience of the neighbouring Hungarian market which they had been constantly visiting and studying for years before.

Since then, their revenue has increased significantly, and their interest has increased alongside that revenue growth. In the ENNA group, which is the owner of PPD and twenty other companies, 300 people are employed, and that is a figure which continues to rise.

Special engagement in the Vukovar region is considered a socially responsible business, in which ENNA and PPD participate through the continuous training of their employees and the New tomorrow (Novo sutra) foundation, which invests in socially useful projects in Slavonia and in scholarships for Slavonian students.

In addition to investing back into their own business and employees, they also invest in sport - and are the proud sponsors of successful clubs such as RK PPD Zagreb and the ENNA Vukovar women's volleyball club. Thus, in addition to achieving excellent results, this Croatian company can also boast of investing in children and young people through some of the things that mean the most to them.

Make sure to follow our business and Made in Croatia pages for more information on Croatian companies, Croatian products, and doing business in Croatia.

Agrokor has made a dramatic and unexpected turnaround as bankruptcy and almost total collapse loomed. Having gone from being the most powerful company in the region, to having almost dragged the entire domestic economy to its knees, and then back to proper functioning in just two years, Agrokor's story is a remarkable one, and one of resilience in the face of adversity.

As Poslovni Dnevnik writes on the 1st of December, 2018, Fabris Peruško, Agrokor's extraordinary commissioner, speaks about Agrokor's continued strength and resilience over an extremely difficult period of time.

"Out of the whole series of related, significant events [that took place] in 2018, three key issues are still being identified as breaking ones in terms of the future of the Agrokor Group - the creditors' agreement on the settlement, the hearing at which that settlement was voted for, and, finally, the validity of the settlement with the High Court's confirmation. A significant factor for the success of Agrokor's extraordinary administration was the strength of Agrokor's companies to continue to improve their business, especially their efficiency, in a very turbulent environment.

Their good results are the backdrop of the future and a powerful argument against the uncertainty and fear that followed the process. The importance of the fact that one of the largest restructuring processes in the world has been realised in such a short time and so successfully is still not being valued in the right way.

In just two years, the largest private company in Croatia and the region, without incurring upon one lipa at the taxpayers' expense, has emerged from its pre-government regime, has undergone a demanding financial restructuring through the settlement of more than 5,700 creditors, and instead of crushing the entire economy of Croatia and the region, Agrokor functions well to this very day, provides employment, provides revenue to the state budget and in its relations with its business partners, and respects all of the agreed upon deadlines.

The implementation of the settlement - a process which will be operationally executed by the creditors' settlement agreement - is ahead of us - a very complex business transfer to the new group. The start of that implementation is expected at the beginning of next year, and it should be fully concluded during the first half of 2019, and then we'll get a company bearing a new name and a new corporate culture. The creditors agreed that the future group would be based on three main pillars: retail, food, and agriculture.

In each of them [the aforementioned three main pillars] there is room for improvement, especially in terms of efficiency, so the operational restructuring we've started is also directed at that. The focus is on areas where the value lies.

Synergic initiatives within the group have been intensified, key business indicators have been unified and business reporting and business segments have been drawn up. The function of the treasury as well as the function of human resources have been strengthened.

In terms of retail, we're currently working on standardising the process in all components, there is great food export potential in which we have leaders throughout the region, and in some areas of agriculture, we can become European players. Although there are challenges through refinancing the oldest loan and long-term capital structure, Agrokor has perspective, and all the prerequisites to remain one of the largest companies in this part of Europe."

Make sure to follow our dedicated business page for more on Agrokor and much more.

As Suzana Varosanec/Poslovni Dnevnik writes on the 29th of November, 2018, Business Intelligence (Poslovna inteligencija), the leading company for the implementation of analytical and strategic ICT consulting in Southeast Europe, is planning to take its business across the Atlantic to the North American continent, most likely to Canada, in a move which would be the next big step for the Croatian ICT company following the opening of their offices in two major European cities, London and Vienna.

The bold plan was confirmed by the president of the management of the aforementioned Croatian ICT company, Dražen Oreščanin, who Poslovni Dnevnik caught up with while he was on an official trip to Canada, where the Croatian-Canadian Economic Forum in Toronto was held. He was heading there as part of visit of numerous Croatian businessmen, which had already been reported by the Croatian Chamber of Commerce (HGK).
 
What are your estimates of the possible effects of the visit of our economic delegation to Canada?

Every step we made towards developing cooperation is a good step, and can make moves. During this visit, several activities were held - a forum with the Canadian-Croatian Chamber of Commerce, B2B meetings with interested Toronto companies, a meeting with the local community of Croatian emigrants in Toronto, a visit to the Kitchener Technology Centre, Waterloo University, and two hi-tech companies in Toronto. Existing contacts are interesting, and time will show whether or not it will result in some specific work.
 
What are the impressions on strengthening economic cooperation?

I think there's a mutual interest, the current commodity trade is fairly small, and the numbers grow year after year. The new CETA deal makes it much easier to trade between the European Union and Canada, and the very fact that HGK and the ambassadors of both countries are actively involved in the organisation of such a visit speaks of mutual interest and great potential.
 
What do the Canadians generally say about the business climate and the benefits of starting a business and investing in our country?

The conversations I mainly led were focused on potential opportunities that we as a Business Intelligence have on the Canadian market, but I didn't  talk to my interlocutors about just those topics. Recently, the Canadian company Constellation took over IN2, one of the largest IT companies in Croatia, so it's obvious that investment interest exists.
 
What is the potential for further expansion of the company on the Canadian market, as well as cooperation with the companies over there?

I certainly see the potential, I hope that some of the conversations we've had to turn into some concrete opportunities and work. We're certainly planning to open up a company on the North American continent after we open companies in London and Vienna. What I've seen during this visit is truly exceptional and very competitive when compared to other places we're contemplating in the United States. We'll probably make a final decision based on the volume of work we have in a specific part of the US and Canada, and here, the potential for a company like Business Intelligence is definitely big.

Make sure to follow our dedicated business and Made in Croatia pages for more information on this Croatian ICT company, other various companies from up and down the country and their services.

Click here for the original article/interview by Suzana Varosanec for Poslovni Dnevnik

The largest Croatian software company and the very first one to exceed 1000 employees has allegedly begun plans for the construction of the Infobip Campus Zagreb.

As Bernard Ivezic/Poslovni Dnevnik writes on the 29th of November, 2018, the largest Croatian software company, Infobip, has apparently decided to surpass itself once again and is planning to build an even larger campus than the one that opened its doors last year in Vodnjan in Istria, this time in the Croatian capital.

To briefly recall, at the end of last year, Infobip Campus Pangea was opened by Prime Minister Andrej Plenković, and this facility, boasting 17,000 square metres in total, became the largest IT campus in the whole country.

The photogallery entitled "Infobip Campus Zagreb" with dozens of images of the new facility was published on LinkedIn by the multi award-winning Zagreb studio SODAarhitekti. After publishing, the post quickly received more than 200 likes, and among the ''likers'' was Infobip's chief operating director, Robert Kutić. Discussions about the construction of a campus in Zagreb have been going on for some time, but there had not been any actual confirmation of that fact until now.

Among the rumours circulated the information that Infobip was looking for PR agencies to properly ''follow'' this project for the company. The photographs show that the campus in Zagreb is expected to be larger than the one in Vodnjan, potentially twice as large. According to the currently available information, the new campus will be located in Klara in New Zagreb, in the area of the city where Microsoft, DHL, Styria, Croteam, and other companies are based.

Vedran Jukić, owner of SODAarhitektat, who initially published the photo gallery on LinkedIn, was unavailable for comment. Infobip also refused to comment on it.

Despite that, Poslovni Dnevnik was unofficially informed from close sources to the company that "that they're just pictures, and the published work is unlikely to be selected". Infobip already has a smaller office in the old part of Zagreb, near Trešnjevka, but apparently plans to continue expanding rapidly. In early 2017, it became the first Croatian software company with more than a thousand employees, and by the middle of this year, there were already over 1,300 of them, of which around 500 are based here in Croatia.

The largest Croatian software company already has fifty offices across all continents except the Antarctic, and its services are used by as many as four billion people worldwide.

The company reportedly made more than a quarter of a billion euro at the global level in 2016, with 350 million euro in profit last year. As was confirmed by the co-founder and director of Infobo Silvio Kutić, they grew 30 percent last year. If Infobip continues to grow at this impressive pace, this year the company could reach 455 million euro, or 3.4 billion kuna, in total revenue. Despite these educated guesses and calculated estimates, these figures are impossible to check because the company's official headquarters are located in London, United Kingdom.

Make sure to follow our Made in Croatia and business pages for more info on business in Croatia.

Click here for the original article by Bernard Ivezic for Poslovni Dnevnik

One Croatian company which deals primarily with Information Technology has launched a praiseworthy project with the help of European Union funds. The project will see around 100 new work position opened.

As Poslovni Dnevnik writes on the 24th of November, 2018, one year ago, the laying of the foundation stones of the business took place. Today, located in the ​​Jalkovec entrepreneurial zone near Varaždin, the new business space belonging to Mobilisis d.o.o., which produces modern, innovative IT infrastructure for industrial process management, as well as mobile collection and data transfer, has been officially opened.

The construction and equipping of the brand new building, which will greatly increase the company's production capacities, has been co-financed by European Union funds, via the means of a tender from the Ministry of Economy, Entrepreneurship and Crafts. Namely, within the framework of the public call for the ''competence and development of small and medium enterprises", the aforementioned company announced its project, entitled "increasing the production capacities of Mobilisis d.o.o. with the building of a new business space and investing in equipment'' amounting to more than 38 million kuna, of which a total of 13.7 million kuna in non-refundable funds was granted.

As the director of the company Krešimir Meštrić pointed out at the opening ceremony, this investment will enable the doubling of sales revenue and also enable further development in line with global trends.

"Today, we're not just opening the building here, but we're opening up more than 100 jobs, at a location which was just a meadow a few years ago. We couldn't have created a better space conversion [than this one]. But with this greenfield investment, the owners of the company have taken a great deal of responsibility upon themselves because this project represents only the physical fulfillment of the conditions. Ahead of us lie the realisation of the plans, but I believe that in this way, we've shown the path and the ambitions that we need to have, which must work to give us confidence and encourage positive trends,'' said Mestrić, emphasising the fact that not only will the company's realised ideas and innovations be created there, but they will also aim to attract business partners from all over the world.

Make sure to follow our dedicated business and Made in Croatia pages for more encouraging Croatian company stories.

At the end of October this year, the Agrokor story drew quiet. Namely, the largest insolvency proceeding in the history of trade law in the Republic of Croatia, as well as the largest restructuring process in Croatia, finally came to an end.

As Marina Sunjerga/VL/Poslovni Dnevnik writes on the 12th of November, 2018, by endorsing the credibility of Agrokor's creditor settlement in late October, the huge process to rescue Agrokor from the pits drew to a close. The rescue of this huge company was an incredibly intense process which has dominated both the economy and the media over the past two years, naturally finding itself among the ''nominees'' for the economic event of 2018.

Over the space of more than eighteen months, agreements between Agrokor's many creditors have been marked by many overtakings, new institutions, political pressure on members of the Government headed by Andrej Plenković, numerous affairs and messy public overthrows. Under the enormous pressure, the company had to manage to somehow continue to do business, which was, in many moments, extremely difficult.

However, thanks to Fabris Peruško, Agrokor's government appointed extraordinary commissioner, and the trust of suppliers in the positive outcome of the whole story, the formerly ailing company has experienced increased profitability and stabilised business.

Most creditors will have to debts of about six billion kuna paid by shares in the ''new'' Agrokor, more specifically the new corporation structure to which Agrokor's assets will be transferred, which will be set up during the next few months of implementing all creditors' arrangements.

Part of the supplier's debt has been billed in cash, and some financial institutions secured part of those claims via refinancing through a roll-up arrangement of up to 1 billion euro. Agrokor, more specifically its sixteen largest companies, posted revenues of 16 billion kuna after the tourist season, with virtually 1.5 billion kuna of operating profit.

Fabris Peruško emphasised that the company was operating better than it was before, and recalled that the deal was agreed with the support of creditors who hold 80 percent of Agrokor's total debts in their hands.

Widespread support for the creditors' deal proposed by the extraordinary administration was the goal that began at a hearing held at the beginning of July this year. To recall, the shares were divided so that the Russian banks Sberbank and VITB held a share of 46.7 percent of Agrokor. The issue of the shareholders' position has still not been resolved, with a settlement reserving 25 percent of the stake in Agrokor, but issues around those assets can only come to trial if they manage to actually prove that their claims that are still being challenged.

Domestic banks received about 12 percent of the company, and the suppliers paid part of the debts with a five percent stake in the new corporate structure. However, thanks to their representatives, Marica Vidaković from Kraš and Marin Pucar from Podravka, they won high-quality positions to continue with their business.

As part of the settlement, there is a guaranteed placement of goods to all of Agrokor's retail chain stores for the next five years, including Konzum, Konzum BIH, Mercator, and Idea. Additionally, if Konzum is operating with operating profits of ess than 40 million over the next four years, it will pay another 75 million euros in cash for the marginal debt.

The implementation of Agrokor's creditor settlement has taken over 100,000 steps, with a workforce of 500 people. It is now necessary to prepare the company for the entry of its new owners, which means that the new corporate structure and new companies will have to transfer over all of their assets, certificates, concessions, labour contracts, brands, and the list goes on,

However, the most demanding business currently in the hands of Agrokor's extraordinary management team is the refinancing of the much-talked-about roll-up loans.

Namely, by the end of December, this one-billion-euro arrangement will come with an eight percent interest rate, but in January, that will jump up to ten percent, and Agrokor will the be required to pay a one-time fee of 75 million kuna to its numerous creditors. By September 2019, that interest would have jumped up to 14 percent. The extraordinary management team hope to refinance the loan by the end of the year.

The various challenges ahead of Agrokor have remain high, since only when the new owners take over the company, set their own people and determine the business strategy, will it be realistically possible to estimate in which way Agrokor's business will affect the domestic economy.

However, regardless of the future of Agrokor, the rescue of the huge company can finally be hailed to have been a successful process which has saved the Croatian economy. With this long and arduous process, a devastating domino effect was avoided, panic was stopped, and the food industry was stabilised.

The fact that most of Agrokor's suppliers recorded a successful business year shows that large companies operating under the Agrokor Group's umbrella have taken the opportunity to consolidate and adapt to new market circumstances. After its long and painful restructuring process, Agrokor remains one of the strongest and most important companies in the domestic economy.

Want to keep up with more news on Agrokor, business and the Croatian economy? Make sure to follow our business page.

Click here for the original article by Marina Sunjerga/VL on Poslovni Dnevnik

When Marin Pucar took over Podravka back in February last year, he comically stated, "Once you go Podravka, you're always Podravka!"

As Marina Sunjerga/VL/Poslovni Dnevnik writes on the 11th of November, 2018, Pucar experienced returning to the large domestic food company, at which he worked for twelve years, very emotionally. Pucar also has many goals and plans set up for the huge company to aim for.

Pucar's big plans for Podravka were soon realised because the Koprivnica-based food company achieved net operating profits of a massive 186 million kuna during the first nine months of 2018, which is the best result and the highest operating profit in Podravka's long history. These sparkling financial results saw employee salaries increase by 1000 kuna and the company get closer to reaching its goal of being a food business consolidator in Croatia, these praiseworthy achievements brought Pucar to his very well-deserved nomination for businessman of the year for 2018.

It is also important to point out his engagement in resolving the crisis in Agrokor from his position as the president of the association of Agrokor's suppliers, which acted uniquely to protect the interests of domestic companies.

''Podravka is a very good company'', said Pucar when he came to the head of the company, but added that it can and should be better because Podravka is much more than just its numerous brands and products.

In just a year and a half of his mandate, Marin Pucar has achieved excellent results with his team. He announced Vegeta's strong development, involving a wide range of products. In his vision and strategy, Vegeta will be branded completely with the culinary field, and all kinds of dishes.

''That's the aim, if we succeed, and we believe that we will,'' Pucar said in an interview for Večernji list.

''We'll secure Vegeta for another hundred years, and add new, additional value for Podravka,'' added Pucar.

Among the priorities, Pucar also emphasised the improvement of the rights and the material conditions of employees as the company's most valuable resource. ''Without satisfied workers, there can be no successful company,'' Pucar said. Namely, The salaries of the lowest paid employees in Podravka will increase by about 1000 kuna a month, which is one of the moves other entrepreneurs must follow if they truly want to retain quality workers.

The lowest wage in Podravka now amounts to 4,000 kuna per month. Through a collective contract, Podravka's employees have been granted a jubilee reward, and the company will pay them 1000 kuna per year for voluntary pension savings, which will eventually provide them with larger pensions when they retire. One of the goals that Pucar has set in front of him is, as stated, to position Podravka as a consolidator for the food industry, as well as the generator of the development of domestic agricultural production.

Accordingly, the company is expanding its cooperation with subcontractors and domestic OPGs to ensure that by the year 2022, its global brands such as Vegeta are secure. To achieve this goal requires a two to three year investment cycle, but the capacities needed by Podravka are sufficient to trigger a serious segment of Croatian agriculture. Part of the financing of these investments was secured by the company from EU funds.

Podravka itself has an impressive investment potential of around 200 million euro, so new acquisitions could realistically be expected. The company's presence on numerous traditional markets such as that of Poland, Hungary, and Russia, is set to increase. Pucar also played an important role in the rehabilitation of the formerly ailing Agrokor Group from the position of the president of the Association of Agrokor's suppliers.

The challenge was to protect and preserve the rights and interests of Agrokor's suppliers, while at the same time not compromise the position of Agrokor, and Agrokor's giant Konzum as the largest domestic retail chain. Unlike various other companies, Podravka didn't stop its deliveries to the then suffering Konzum, thereby confirming its responsibility for the continuation of Konzum's operations and the preservation of jobs.

The successful running of this extremely complex process resulted in the stabilisation of Agrokor's operations, a large part of the Croatian economy, and the preservation of Agrokor's supplier stability.

Otherwise, Pucar has spent most of his career in the food industry. He started his professional career at Gavrilović back in 2001, and one year later, he was in Podravka's meat industry, Danica, where he was the director of sales, marketing and development. He quickly moved to Podravka's high position of director for the Croatian market, and from 2008 to 2012, he was a member of the management of the company.

After five years with Podravka, he went to Zvečevo, which he led before returning as Podravka's main man.

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Click here for the original article by Marina Sunjerga/VL on Poslovni Dnevnik

One Croatian company receives the nod of approval and an enviable cash injection from some of Croatia's most prominent business angels who believe in their potential for enormous success.

As Lucija Spiljak/Poslovni Dnevnik writes on the 10th of November, 2018, since the very launch of the game, more than 1,600 copies have been sold, and their income, as they state from this Croatian company, is enough to cover salaries, programs and servers. Given that the game is still at an early stage, they say they didn't actually expect all that much from it initially.

Eleven members of the Croatian Business Angels Network - CRANE, provided the Jastrebarsko gaming studio Hyperion with the largest investment by number of members so far. They decided to invest in the launch of a young, three-member team who independently released a survival computer game called Journey of Life just a few months ago. During that period, the game has earned more than 250,000 kuna in revenue.

The founder of the startup is 22-year-old Adriano Žeželić, Thomas Lesniowski from Germany, and Siddhante Nangla from India, and the project was presented at the CRANE Startup, which held at the Zagreb School of Economics and Management on Wednesday. Investors have estimated the value of this Croatian company to be 500,000 euro, and the business angels who have invested will receive somewhat less than 20 percent of the newly established company, which has its seat in London.

CRANE President Davorin Štetner was first invested in the startup, followed by Hrvoje Prpić, then Aljoša Domijan, Zoran Miliš, Dennis Rukavina, Zvonimir Orešar, Denis Matijević, and Nikola Serdar.

Žeželic contacted President Davorin Štetner on the suggestion of a friend who claimed he left a positive impression on him, and after that, the young author of the game from Jastrebarsko, who is an electrical technician by profession, had the chance to present the project to others.

"I like to see when somebody is able to launch such a demanding thing without getting any help, so I think that now, with the help of the money and the advice from experienced business angels, Adriano will succeed in his ambitious plans," said Štetner.

Hrvoje Prpić, the lead investor, spoke with Roman Ribarić from Croteam on Journey of Life's potential and CRANE's decision to investigate the market before actually investing anything. From the previously released game, Croteam raised as much as 16 million euro, Prpić concluded that Hyperion's Journey of Life study could also bring great success. Prpić said that the long-term investment aim of the business angels is to encourage Hyperion to continue to release games in order to become even more significant.

"As a passionate gamer who has always been in love with computers, I started planning the 2016 project, and I started with its actual realisation in October 2017. That year, I decided to realise my dream and founded the Hyperion Studio and released the game at the beginning of May," Žeželić warmly recalled.

"We got some great support from players around the world that helped us keep the project going. We communicate daily with people who join our group and share new things with them. The support of experienced business people is of great importance and I'm looking forward to working with CRANE because I believe that with some business advice, money, and assistance in other segments, Hyperion Studio can become an international name in the gaming industry,'' stated the Croatian company's young founder.

The game is currently available only for personal computers, but mobile versions are being discussed and planned, and they will hopefully be on the market during the second half of next year.

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Click here for the original article by Lucija Spiljak for Poslovni Dnevnik

Ivica Todorić has returned to Croatia after more than a year in London, having landed on the territory of a country in which he is no longer the owner of the largest regional company. Exactly one year after handing himself in in the British capital, living under the watchful eye of the Metropolitan police and after an agonisingly long court battle, Agrokor's former untouchable main man returned to his homeland utterly powerless. A far cry from the not so distant reality Todorić once enjoyed, having once owned his own private island, Smokvica.

As Jutarnji/Vanja Nezirovic writes on the 9th of November, 2018, unlike back on the 10th of April 2017, when he signed Lex Agrokor, which activated the law to allow the Croatian Government to step in and rescue Agrokor, and unlike in the autumn of the same year when he temporarily "emigrated" to London, Agrokor's largest single owner is now Russia's Sberbank with a 39.2 percent stake. The settlement was a long and painfully complex process, however, in order to execute such a settlement, creditors, primarily financial lenders, had to write off a large part of their claims, around 60 percent.

Namely, the exact amount and percentage of the final write-off of the creditor's claims will be known at the time when Agrokor is sold. To recall, on April the 10th, 2017, Agrokor had 7.7 billion euro in debt, of which about 1.5 billion euro was debt within the group, which means that the debt to third parties actually amounted to about 6.2 billion euro.

If we know that the framework calculations of Agrokor's value are projected at about 2.3 billion euro, this would mean that the creditors, primarily financially (based on this nominal projection), were forced to give up an enormous total of about 4 billion euro. This was the price of the survival of Agrokor, which for now, following these write-offs, has a debt of 1.06 billion euro in so-called roll up loans.

Agrokor's medium and large suppliers have so far averaged 60 percent of their claims for goods and services, were paid 500 million euro in cach for old debts, with 46 percent of them having a return of between 80 and 100 percent. When the rest of the debt is paid out over four years, and when part of Agrokor's property is converted, their return will amount to about 80 percent. The bonds' return rate ranges between 40 percent and 80 percent, while the largest number of domestic and foreign financial institutions and other creditors will have an average return on demand of up to 20 percent.

At the time of signing Lex Agrokor, Todorić's Agrokor Group was blocked in the amount of 3 billion kuna, and it was naturally expected that this dire situation could lead to Croatia into a short-term recession. The possibility of Agrokor's bankcruptcy could have, according to CNB/HNB (Croatian National Bank) projections, lead to several smaller banks entering into a very dangerous situation indeed, yet while the banking system luckily remained stable, the losses bigger banks suffered were felt almost immediately.

Even with the implementation of a specially regulated bankruptcy proceeding through Lex Agrokor, several contract suppliers ended up in bankruptcy or having to undertake pre-bankruptcy proceedings, some stabilised the recapitalisation of third parties, some are still awaiting ownership and business restructuring, but a stronger economic and social shock was thankfully avoided.

Today, Agrokor's debt has been reduced to levels that should be viable, things are generally much more stable and the company is expected to return to normal function in 2019. The results of companies like Jamnica and Ledo, are once again very good, Konzum seems to be more than just recovering, but some other companies from within the large Agrokor umbrella, like Velpro and Konzum BiH (Bosnia and Herzegovina) are still very vulnerable.

It's also clear that agricultural companies such as Vupik will need some more time to recover properly, but the overall picture of the company today is much more healthy than it was a year ago, thanks to the current extraordinary commissioner, Fabris Peruško.

That means that the Croatian economy, a much more than significant part of which is made up by Agrokor, has gone from being under grave threat, to being more stable, more safe, and more competitive.

Want to keep up with the latest news and detailed information on Ivica Todorić and his swapping of London for Remetinec prison? Make sure to follow everything here.

Click here for the original article by Vanja Nezirovic for Jutarnji List

One Croatian company which pays its employees wages of over 1,000 euros per month has had an offer to move its business operations to Ireland. The company currently employs 100 people in Croatia and 50 people from outside Croatia.

As Poslovni Dnevnik writes on the 9th of November, 2018, the managing director of the Rijeka-based Alarm automatika company, Boris Popović, warned about the problems of entrepreneurs with employment and the retention of experts in domestic companies from the ICT sector in Osijek last week.

He said that in his Croatian company, which employs engineering teams, he always fears the departure of experts who are getting more profitable business deals. However, as Glas Slavonije reports, tempting offers are not only received by employees, but also by entrepreneurs.

Alarm automatika deals with delivery solutions in multiple segments of technical protection, ie security systems. The company buys hardware from across the world, but develops its software, creates its own brands and eventually puts it all together into a unique solution offered to customers across multiple markets. Approximately one third of the total revenue is realised by the company's export of its products, and the plan, according to Popović, is for export revenue to reach half of the company's entire revenue by 2020.

Popovic spoke in depth on the topic of how the Croatian state can assist exporters in Osijek, including examples from some countries such as Canada, which funds research and development salaries in strategic industries. He also mentioned the fact that both China and South Korea have measures in place to reward their exporters.

"The interests of the state and society are for entrepreneurs to open up new jobs and invest more in development. The state should therefore encourage those who invest and open new jobs. How can it do that? It can do so by covering part of the costs incurred in research and development, and also with tax breaks on that work. We've seen that with the example of Romania, which has deemed their ICT industry a strategic industry, and has reduced the costs to all employees in that sector to as little possible. 300,000 foreign companies are now active in Romania. This country has become the largest centre for the development of the ICT industry and now the average salary in that sector in Romania is two thousand euros,'' Popović pointed out.

''We now have one hundred employees in Croatia, and 50 more outside of Croatia. On average, their salaries are over a thousand euros, of course, depending on the segment in which they work. It would be good if the taxes on these salaries were 20 to 30 percent lower, and that our employees' salaries were higher by that same amount. We're always in fear that the most important people will leave us, as they constantly receive offers from other companies. And not just those, but our company gets offers. We were the guest of the Irish development agency who suggested we move the entire company over to Ireland. For now, we're not going to do it, but if we end up in a situation where we're without people (staff), then what else can we do other than go there with them,'' admitted Popović.

In Croatia, this Croatian company has offices in Zagreb, Rijeka, Split, Zadar, and outside of Croatia it operates in all the countries of the former Yugoslavia, as well as in Romania, Bulgaria, Hungary and Slovakia.

According to Popović, the best operating conditions are in Slovenia, followed by Romania, Bulgaria, and Hungary. In Croatia, the highest taxes are paid on employee salaries.

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