Croatia to buy back INA from Hungary's MOL

The Croatian government is urging talks on a secured loan to buy back shares of oil and gas company INA from Hungarian counterpart MOL, Croatian Economy Minister Ivan Vrdoljak was reported by portfolio.hu as saying.

"We may use shares held by MOL and up to 19% of our own INA stock as collateral. That way there won't be any need for state guarantees, and the transaction would not add to public debt," the minister was quoted as saying by Bloomberg and other news agencies.

"Buying back INA shares would be the best solution for Croatia's energy strategy and developing our hydrocarbon resources. A second solution would be for the country to come to terms with MOL, while a third option would be to find a new partner in INA," Vrdoljak added.

After Bloomberg citing the minister as saying that the government was considering options to take out a loan to buy out MOL from Vrdoljak was asked for further clarification.

He only said, however, that the government does not have any solutions related to the possible purchase of INA shares, but that it is vigorously searching for a solution that would best serve to protect national interests. All options are open, he added.

Earlier, Russian energy giant Gazprom expressed interest in buying MOL’s 49.1% stake in INA. Portfolio.hu notes that - according to the latest reports - talks between Zagreb and MOL are to resume on July 25.