Croatia: EIB continues to support SME and MidCap projects in Croatia with EUR 400m

European Investment Bank (EIB) provides two loans to the Croatian Bank for Reconstruction and Development (HBOR - Hrvatska banka za obnovu i razvitak):

• EUR 250 million to co-finance projects of small and medium-sized companies (SMEs)
• EUR 150 million to support investments of the MidCap companies

Both loans will contribute to implementing projects in the areas of industry services, tourism and other priority sectors. They will be combined with EU grant support provided by the European Commission under the Energy Efficiency Finance Facility in order to foster projects contributing to an increase of energy efficiency and energy savings in Croatia.

EIB Vice-President Dario Scannapieco stated: “Better availability of long-term financing, provided in cooperation with HBOR, a well-established partner of the EIB, is crucial for further development of the SME and MidCap sectors, which are the backbone of the Croatian economy and the main drivers of growth and employment in the country. Together with HBOR, the EIB is ensuring that the benefits of granting loans on favourable terms are passed on to eligible beneficiaries to facilitate projects including those contributing to the increase of energy efficiency.”

Anton Kovacev, President of HBOR’s Managing Board stated: “The funds raised today in the amount of EUR 400 million will be used by HBOR to encourage new investment, particularly to introduce new products and technologies. The EIB has been supporting our efforts for thirteen years as such investments are a key prerequisite for an increase in the competitiveness of the Croatian economy and exports. Let me take this opportunity to thank our colleagues from the EIB once again for their confidence and for having recognised HBOR as a key partner for co-operation in Croatia.”

This operation consolidates the strong and effective partnership between the EIB and HBOR. The EIB has already granted credits to HBOR totalling some EUR 1.8 billion. These funds have supported projects of SMEs, MidCap companies and public entities in the areas of industry and services, including tourism, and small and medium-scale infrastructure schemes promoted by local authorities.

The EIB supports SME investments in Croatia in the framework of the Joint IFI Action Plan for Growth in Central and South Eastern Europe, which is focused on providing better access to long-term finance for Europe's SMEs to help mitigate the effects of the financial crisis. Those funds support growth by fostering economic restructuring, consolidation and diversification, as well as enhancing long-term competiveness through the increased availability of long-term credit.