December the 2nd, 2023 – Approximately half a billion euros in Croatian financing has been secured by HBOR and the EIB. Here’s who it is primarily intended for…
As Poslovni Dnevnik writes, it is currently expected that the new agreement between the European Investment Bank (EIB) and the Croatian Bank for Reconstruction and Development (HBOR) will make half a billion euros of new Croatian finances available.
Small and medium-sized Croatian companies are set to benefit
These financial resources are intended primarily for small and medium-sized domestic companies, mid-cap companies and some public sector entities. The contracting parties signed the first tranche in the amount of 200 million euros from the total approved loan in the amount of 500 million euros, which is primarily aimed at supporting the aforementioned types of enterprises with medium market capitalisation. Among other things, this agreement will help HBOR absorb further EU grants and structural funds, it is also expected to help mobilise investments in the Croatian economy in the amount of up to one billion euros.
“HBOR is the leading provider of green Croatian financing, which is a key priority of the EIB within the Action Plan of the Climate Bank”, commented EIB Vice President Teresa Czerwińska.
Green Croatian financing
“We appreciate HBOR’s recent progress in this area, particularly in terms of its environmental and social management systems and standards, and we’re pleased to be able to delegate green financing decisions to it. We’re also considering providing free advisory assistance to support the institution in consolidating its role as a leading green financier on the Croatian market.”
“I’m very glad that we’ve been able to sign another contract with the European Investment Bank, a leading financial institution in the field of sustainable financing. Through our long-term cooperation, the Croatian Bank for Reconstruction and Development has actively acquired knowledge and experience from the EIB. I’m also glad that the effort that our management and employees invested in acquiring new knowledge led to the true transformation of HBOR into a leader in Croatian financing when it comes to projects aimed at environmental protection. We’ve built a lot of trust with the EIB.
The funds of this contract will encourage the development of small and medium-sized and medium-capitalised companies, as well as public institutions, and help the transition of the European Union towards carbon neutrality. This contract reaffirms the role of HBOR as the leading institution in Croatia for the financing of green projects”, stated Hrvoje Čuvalo, President of the Board of HBOR.
Public entity support
The EIB and HBOR have agreed that 70 percent of these funds will be directed to small and medium-sized enterprises and enterprises of medium market capitalisation, while the rest will be intended to support, among others, public sector entities in the country. Of the total amount, around 20 percent of this Croatian financing have been earmarked for green projects, including sectors such as energy efficiency and clean energy production, sustainable transport and environmental protection in accordance with the EIB Group’s wider policy: Climate Bank Action Plan.