Based on the verdict, HPB will reverse the previously formed provision in the amount of HRK 89.11m. The mentioned amount will be stated as income in the P&L for Q2 2020.

HPB published an announcement on the Zagreb Stock Exchange stating that on 12 June 2020 it has received the second-instance verdict by the High Commercial Court in Zagreb dated 14 May 2020 by which the first-instance verdict is altered and the plaintiffs’ claim – by which HPB was order to pay an amount of HRK 80.34m together with penalty interest accrued since 10 March 2011 to the plaintiff Moj dvor građenje is denied.

The plaintiff is ordered to settle litigation expenses to the defendant by the same second instance verdict, amounting to HRK 1.3m within eight days. Based on the above verdict, HPB will reverse the previously formed provision in the amount of HRK 89.11m. The mentioned amount will be stated as income in the P&L for Q2  2020 within the item Provisions or reversal of provisions.