Dioki's debt to banks and other creditors on 31 December 2011 amounted to 1.17 billion kuna, with the debt to the banks amounting to HRK 758 million. As for the state, the debt to the HEP was HRK 174 million and to the HZ HRK 1.4 million.

Even though Dioki is a privately owned company, the government has joined in efforts to solve its problems and agreement has been reached with the majority owner and the creditors that the creditors' claims should be turned into ownership stakes.

This would be followed by the appointment of a new management board and the payment of the workers' overdue salaries, Economy Minister Radimir Cacic said.

Dioki is one of the biggest Croatian companies which has been having problems for a number of years. This government is not responsible for that, but it is fully aware of the importance of every job and has done its best to solve the problem, said Cacic.

Prime Minister Zoran Milanovic agreed with Cacic's statement, saying the government's approach to the Dioki issue had been limited by some legal restrictions because Dioki was a private company.

"We didn't say that it was not our business, nor did we act that way, but we tried to find a legal and effective solution..., however, we can't do it in front of the cameras or by making irresponsible statements," Milanovic said.

The government today also adopted a conclusion by the Agency for State Property Management under which Traubi International, a company owned by businessman Salamon Berkowitz, did not meet conditions for the purchase of shares of the beverage producer Dalmacijavino.

According to Cacic, since the bidder did not meet the tender conditions, he is believed to have scrapped the plan to buy Dalmacijavino shares.

Dalmacijavino is an overindebted, insolvent company and its giro account has been blocked for quite some time, so conditions have been met to file for bankruptcy. Dalmacijavino will continue operating, but will declare bankruptcy and be restructured, Cacic said.