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Green light given for conversion of fertiliser manufacturer's debt into government equity

Izvor: HINA
ZAGREB, Aug 20 (Hina) - The Croatian government could soon increase its stake in Kutina-based company Petrokemija from the present 54.68 per cent to 63.26 per cent. In return, it would forgive the country's only fertiliser manufacturer a debt for gas which, with accrued interest, had grown to 231 million kuna (about EUR32 million euros) at the end of April this year.
ZAGREB, Aug 20 (Hina) - The Croatian government could soon increase its stake in Kutina-based company Petrokemija from the present 54.68 per cent to 63.26 per cent. In return, it would forgive the country's only fertiliser manufacturer a debt for gas which, with accrued interest, had grown to 231 million kuna (about EUR32 million euros) at the end of April this year.

The Agency for the Protection of Market Competition (AZTN) has given the Ministry of the Economy the green light to convert the gas debt, dating from 1999, into equity, concluding that such a move would not represent a government subsidy.

The government can convert Petrokemija's debt into equity only after the AZTN gives its opinion. Since the agency published its decision in the latest issue of the Official Gazette, this proposal could soon be tabled before the government.

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