Agrokor, the supermarket whose collapse threatens the Balkans

The Economist runs a piece on the troubled Croatian food and drinks company Agrokor, whose potential collapse could trigger a recession in the Western Balkans. Agrokor, which owns the largest supermarket chain in the Western Balkans, Konzum, has known debts of around $8 billion, more than $1 billion of which is owed to the Russian bank Sberbank. Faced with huge debts and irate lenders Agrokor owner Ivica Todoric, who has long had a cozy relationship with the Croatian government, essentially turned over the business to the state, which is now the administrator. In the former Yugoslavia, a region of about 20 million people, an estimated 500,000 have jobs that would be affected by the collapse of Agrokor.

 

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