ZAGREB, June 14 (Hina) - The Croatian parliament on Friday discussed a report on the financial consolidation of nine agricultural and processing industries' conglomerates.
ZAGREB, June 14 (Hina) - The Croatian parliament on Friday
discussed a report on the financial consolidation of nine
agricultural and processing industries' conglomerates. #L#
The consolidation has not been completed in any of these nine
conglomerates. However, the government and creditors came to terms
in six cases. As a result, these six companies have a favourable
starting position for restructuring and privatisation, Deputy
Agriculture Minister Tomislav Ledic told parliament.
In another three no settlement has been reached with creditors,
said Ledic, submitting the report on the bail-out of the nine
conglomerates.
Therefore "PIK Vrbovec", "IPK Osijek", and the Jasinje company in
Slavonski Brod might go bankrupt, he added.
Ledic said the reasons for the financial bail-out plans for the said
companies were the gravity of their financial problems and a great
portion of the government's stock in them, which ranges from 50 to
100 percent.
The chief reason for their consolidation is the fact that 11,000
workers employed in them will retain their jobs, as well as many
family farms connected with the conglomerates.
In this context, Ledic said the workers were waiting for back wages
worth 3.8 billion kuna.
The benches of the parliamentary parties said the consolidation of
the agriculture and food-processing industry had so far failed in
every segment.
The bench of the biggest opposition party (HDZ) suggested that
parliament should ask the government to draw up bail-out plans for
family farms which employ one million people instead of investing
almost four (4) billion kuna in the said conglomerates with 11,0000
workers.
Other benches agreed that the said conglomerates' losses should no
longer be covered, and advocated that individual and contract
farmers should be encouraged to take over a leading role in
agricultural production.
(hina) ms sb