INA owes the Croatian government HRK 1.35bn (US$ 266m) in tax arrears, Business.hr reported, citing Finance Minister Ivan Suker. The company will pay its debt by the end of the year as it can sell some assets, probably real estate, Suker was quoted as saying by the newswire. Croatian legislation allows companies to pay tax in installments 10 months after they are due with penalty interests of 16%, Business.hr said.
The newswires have speculated on hard stance of the Croatian government yesterday, so announcing the terms of the payback is healing news for us. Payback, however, seems difficult for INA given its though liquidity situation.