Preserve jobs: Agrokor companies in BiH employ over 5,200 workers

The Council of Ministers of BiH adopted and will forward to the Parliamentary Assembly of BiH the Information of the Ministry of Foreign Trade and Economic Relations on the current crisis in the company "Agrokor" and its business entities in Bosnia and Herzegovina with possible implications for the domestic economy.

The Information contains conclusions from several meetings of representatives of competent institutions in BiH, line ministers of the region's countries and representatives of the Council of Ministers of BiH with representatives of the Government of the Republic of Croatia.

The Council of Ministers of BiH, in accordance with the agreement reached with the representatives of the Government of the Republic of Croatia, expects the submission of a comprehensive plan of activities for stabilizing the situation in "Agrokor" with a detailed inventory of obligations and debts of this concern, as well as a plan for settling and continuously monitoring obligations to suppliers without discrimination.

Until then, the activities of the competent institutions of BiH will be focused on protecting the interests of BiH companies within the "Agrokor" system, their employees, suppliers, contractors, minority shareholders and domestic creditors.

Competent institutions in BiH, in accordance with their legal powers, are conducting a more extensive and continuous control of financial flows between "Agrokor's" daughter companies, with a ban on risky transactions.

More than 5,200 workers are employed in "Agrokor's" daughter companies in Bosnia and Herzegovina, more than 1,300 suppliers are active, and these business entities have an annual turnover of over 500 million euros.

According to available data, the debts to suppliers of "Agrokor's" companies in BiH as of December 31, 2016, amounted to 318 million KM, of which 170 million KM were to domestic suppliers. In the first three months of 2017, debts to domestic suppliers were reduced to 131 million KM, of which 74 million KM were due.

According to data from the Indirect Taxation Authority of BiH, "Agrokor" companies in BiH have no VAT debts as of March 30, 2017.