Agrokor cannot use Frikom or Dijamant as collateral

Croatian company, Agrokor cannot use companies Frikom or Dijamant as collateral for loans. This is what the Serbian law stipulates, i.e. mother companies cannot use their daughter companies as collateral for loans obtained abroad.

On Monday, media reported that Agrokor’s companies in Serbia – Frikom and Dijamant – will be used as collateral for financing of the Croatian concern. Agrokor refuted these claims via its PR agency in Serbia. Even if the information were true, it would not be legally doable.

“It is impossible for Serbian companies, which operate under Agrokor, to be the guarantee that their mother company would fulfill its financial obligations regardless which bank would approve a loan to Agrokor – a Croatian or a Serbian one. This goes against the Law on Foreign Exchange Operations”, the National Bank of Serbia says and adds that Agrokor cannot use the assets of companies registered in Serbia for obtaining loans or re-financing of its existing financial obligations.

The National Bank of Serbia explains that the Article 23 of the Law on Foreign Exchange Operations says that domestic legal entities can grant financial loans to foreign ones on condition that the foreign company is majority owned by a domestic company. In translation, if Frikom or Dijamant were owners of Agrokor, and not the other way around, they would be allowed to use their assets as collateral for the Croatian company’s loans.

(Vecernje Novosti, 06.06.2017)

This post is also available in: Italiano

Share this post

Leave a Reply

Your email address will not be published. Required fields are marked *

scroll to top