ZAGREB, October 25, 2018 – The Croatian Reconstruction and Development Bank’s (HBOR) strategy focuses on EU funds, introduction of new market products and stimulation of exports, HBOR Management Board chair Tamara Perko said at an international conference on export stimulation organised in Dubrovnik on Thursday by HBOR.
Speaking of new market products, Perko cited venture capital and equity funds. The venture fund project is at a slightly more advanced stage, she said, expressing hope that it would be presented to the market by the end of the year. The entire process is run by the European Investment Bank (EIB), which has significant experience in that field, she said.Speaking of new market products, Perko cited venture capital and equity funds. The venture fund project is at a slightly more advanced stage, she said, expressing hope that it would be presented to the market by the end of the year. The entire process is run by the European Investment Bank (EIB), which has significant experience in that field, she said.
As regards the equity fund project, it is expected to be presented on the market next year. Its value is expected to be around 70 million euro, while the value of the venture fund will be 40 million euro, it was said.
With regard to EU funds, Perko recalled that the bank launched its first financial instrument for growth and development, intended for small and medium businesses, a year ago. She also cited the launching of a financial instrument for greater energy efficiency, primarily of public buildings and public lighting.
By the end of the year, a financial instrument for rural development will be presented, and next year another financial instrument, for energy efficiency in the private sector, will be presented as well.
Perko said that HBOR, being primarily an export credit agency, would focus on exports, notably export insurance, and that this year it would mark the 20th anniversary of that model. The most frequently cited objection HBOR receives concerns too high interest on loans, Perko said, adding that HBOR was working to secure the cheapest possible sources of financing.
Answering reporters’ questions on the margins of the conference, Perko said that HBOR’s exposure to the ailing Uljanik and 3. Maj shipyards was significant but she would not comment on the exact amount.
She said that HBOR’s involvement in the possible bailout of the Uljanik Group depended on the dock’s overhaul plan, which the bank had not seen yet. If the government requests assistance, HBOR will step in, she said, but noted that the assistance had to be sensible, “because if more money is given, there has to be a certain level of security that it will be paid back.”
Finance Minister Zdravko Marić, who also attended the conference, was hopeful that exports which, he said, were the healthiest and most propulsive part of Croatia’s economy, would continue to play an important role in the national economy. He underlined the cooperation with the European Investment Bank and other international financial institutions on improving the lending, investment and overall economic activity in Croatia.
Emphasis must be put on improving living standards and employment as without support from a strong economy one can hardly speak about the ability to respond to key challenges such as negative population trends, he said.
Croatia has been registering a growth rate of three percent for several years, but the potential of the national economy is currently below that rate, he said. “We all need to do what is necessary to raise economic potential to higher growth rates,” Marić said.
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