– Today marks the beginning of a systematic, thorough resolution of the crisis and, above all, the first phase of the restructuring process of Agrokor, Prime Minister Andrej Plenković stated on Monday at a press conference following the Government session, emphasizing that it is crucial at this moment to precisely agree on the dynamics of activities this week through dialogue with suppliers and coordination with the largest creditor banks.
– It is essential that fresh liquidity comes in, meaning new funds that creditors, lenders, and banks are willing to provide to Agrokor. In this way, by Easter, the payment of salaries to employees and the start of payments to suppliers will be secured, the Prime Minister noted.
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He thanked all suppliers for their patience during the process, stating that they have shown maturity and expressed understanding for their problems. He said that the Government acted in the only possible, correct way, by establishing a solid legal basis for action.
– I want to say that Mr. Ramljak has the necessary references, has the required experience, and what was particularly important to me when we thought about the profile of the person, we were looking for someone who knows the actors in the Croatian economy, who knows exactly who is who, what the relationships are, what the problems related to Agrokor’s business are. Because I believe that the person the Government appoints to such a position must have that content and almost an institutional memory of all events related to this topic, he stated.
The Prime Minister expects a calming of the overall situation and financial markets, normalization of conditions, consolidation, and proper messages to international institutions, neighboring countries, from small suppliers to family farms, employees, and all actors.
– The Government is leading the process, has invested a lot of energy, a lot of political credibility into it, and we will persist in this, because it is a topic worth giving our maximum engagement, he emphasized.
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He also reported that today there will be a unblocking of Agrokor’s accounts and emphasized that care will be taken regarding a “reasonable and rational manner of distributing existing claims towards suppliers.
Ramljak: I Am 24 Hours in Agrokor
Ramljak promised that he would do everything he could to solve Agrokor’s problems and will be, he says, because there is little time, “24 hours only in that.” He also emphasizes the necessity of restoring trust among employees, suppliers, and creditors, which he will attempt together with his team that he already has in preparation. – That is the first priority, Ramljak said before the meeting that will follow in the Banski Dvori with suppliers and bankers.
He will try, Ramljak continues, to secure money for the payment of salaries to workers and suppliers by Easter, especially for small family farms, and in the next 12 months, he says, “we have a very demanding job ahead of us.”
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He expects that the first funds for Agrokor’s liquidity will be secured by the banks by the end of the week, and believes that 150 million euros of new liquidity that will, as can be heard in public, be allocated to Agrokor, along with generating new revenues after the unblocking of the group’s accounts, “will be sufficient to start paying salaries and small suppliers.” He did not want to speak about who will be in his team, nor whether Antonio Alvarez, the Chief Restructuring Officer, will be included. Agrokor will, he said in response to a journalist’s question, in the future have to be restructured in a way that leads to “certain changes in ownership structure and everything else,” but he did not want to talk about details because it is still too early for that.
Plenković Counts on Zdravko Marić
For the decision to appoint Ramljak as the commissioner in Agrokor, Minister of Finance Zdravko Marić also voted at the session, who had previously abstained from all decisions related to the group due to his former business engagement in that group, and Prime Minister Plenković, when asked by journalists whether this means that he counts on him fully in the future, replied: – I have counted on him since the moment I spoke with him about being the Minister of Finance, and at this moment new circumstances have arisen and Minister Marić will be normally included in the Government’s actions on all relevant issues, said the Prime Minister. Ramljak’s deputies will be known, he said, after Ramljak becomes acquainted with the facts in Agrokor and consultations thereafter.
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– The Government will make appropriate decisions to ensure that the entire team of people engaged in the demanding restructuring process is of high quality. We will ensure that all those who can contribute to the success of this process with their knowledge, experience, ability, and desire can give their contribution, he said.
He emphasized that there can be no limitation of ownership rights over any Croatian company operating in Serbia, and if such a situation arises that could potentially lead to some kind of dispute, he stated, the state will engage very strongly.
The Prime Minister believes that it is in the banks’ interest to find a long-term sustainable solution for Agrokor. – If they were willing to provide Agrokor with certain loans, then I am sure that they are now interested in these circumstances and with the additional engagement of the Government, the work of the commissioner, certainly relying on the fact that this process is being led and that through active participation in it, they will demonstrate their willingness to provide new credit and fresh liquidity, to protect their interests in the best possible way, he said.
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Plenković reiterated that through dialogue he wants to find a long-term sustainable solution and that the Government’s policy is responsible, based on the protection of Croatian interests and international law and the fundamental principles of the international order. – And our economic cooperation is open with all countries, including Russia, he added.
Journalists also pointed out that the Agrokor problem has revealed many problems in other companies and asked whether it could happen that “they also sink because they are not healthy.”
Our goal, says the Prime Minister, is to use this case to identify problems in business, resolve them, ensure the safety of payment transactions, and in this way draw certain lessons that the Agrokor example gives us. – This is one of the broader, transformative goals, which will be an added value in adopting this law and engaging in resolving this issue, he concluded.
Government: Extraordinary Commissioner Ante Ramljak
At this morning’s Government session, where the decision was made to propose Ante Ramljak as the extraordinary commissioner in Agrokor, Prime Minister Plenković said that this is primarily a political issue, which has the significance of stabilizing Croatian society, public debate, and at the same time it is a key economic and financial issue for the Republic of Croatia. He stated that Ramljak is an experienced financial and economic expert who has proven himself in his career as an investment banker and consultant, who knows the conditions in the Croatian economy very well and is familiar with all stakeholders in that process.
– I believe we have chosen a person who, with his experience at this mature age, but also with a lot of energy, willingness, and enthusiasm, will be able to perform the duties of the commissioner effectively, he added. He stated that the Government’s goal is to solve the problem, that is the responsibility taken on by the Croatian Government. It is important, he emphasized, that in all previous activities we have ensured that there is no uncontrolled effect or undesirable chain reaction on the Croatian economy.
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– We have ensured with our previous calming statements that there is no panic in the financial market. We have also ensured, thanks to the understanding and patience of suppliers, an appropriate, almost fully correct supply of Agrokor’s stores and companies, and now we are making a political decision that, in my opinion, is the moment when we will lower this kind of high threatening tide, perhaps not exactly to a phase of calm, but to a gentle afternoon maestral, when it comes to the Croatian economy, said Prime Minister Plenković.
He emphasized that the second phase is the restructuring process of the company. – We expect from the commissioner, after he gains a thorough and immediate insight into the situation in Agrokor, that thereafter, in consultations with the Government, the creditors’ and advisory councils, we approach making decisions on selecting the most appropriate and highest quality advisor for that process, he said.
Reactions of Ministers
Deputy Prime Minister and Minister of Economy Martina Dalić said that from today the situation begins to be resolved. – From today, step by step, this problem begins to be gradually resolved, and at the heart of the law and activities that the commissioner will undertake in the coming days is the payment to suppliers and the restarting of the Agrokor system in the right direction. All those who said that suppliers need to wait 15 months to collect their goods were not telling the truth. Payment to suppliers, especially the smallest ones for whom long payment terms are the heaviest burden, will be a priority for the commissioner, and I believe that the payment schedule will be made this week, said Dalić. She added that employee salaries are also at the top of the priorities.
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Minister of Agriculture Tomislav Tolušić said that family farms and small producers will be settled and that everything is heading towards calming the situation and resolving the problems. Minister of the Interior Vlaho Orepić emphasized that this solution does not mean amnesty for those who brought us to this state and announced steps to define responsibility for the situation we find ourselves in. Minister of Justice Ante Šprlje assessed that this is a move that will lead to calming the entire situation, whereby this is not a situation aimed at saving anyone’s skin, but rather the Croatian economy, the smallest people. – The competent authorities will determine whether there is responsibility for those involved in bringing about this situation, he said.
