Agrokor Group companies €48 million further in debt

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The four companies of the Agrokor concern have taken a €48.3m loan from the Croatian Bank for Reconstruction and Development (HBOR) to prepare exports, according to a statement on loan contracting and guarantees from Jamnica, Zvijezda, Ledo and PIK Vrbovec.

The principal of the loan to Jamnica is €15m to be paid back in 24 equal quarterly instalments of which the first is due on 30 June 2019, with a final loan return deadline of 30 June 2025.

Ledo has signed a contract for a loan of €3.3m with a payment period of 12 months. Zvijezda has contracted a loan of €10m to be returned in one year and PIK Vrbovec one of €20m also for a year.

Moody's credit rating agency has recently reduced Agrokor's rating owing to a combination of last year's weak results and the high level of the group's debt.

Agrokor's credit rating fell from B2 to B3 with a stable outlook, and at the same time Moody's reduced the rating for its bonds that come to maturity in 2019 and 2020 from B2 to B3.

Translation provided by: www.halifax-translation.com