Croatian businesses are set to receive a €300 million boost in long-term financing under a new loan agreement between the European Investment Bank and the Croatian Bank for Reconstruction and Development (HBOR.
The €300 million will be channelled to small and medium-sized enterprises (SMEs) across Croatia through HBOR, the EIB announced on Wednesday.
SMEs are generally defined as firms with fewer than 250 employees.
The money is intended to improve access to longer-term funding for investment projects, including business plans linked to innovation, environmental measures and job creation.
The loan is the first tranche of a wider €500 million EIB financing package for HBOR to support business investments across the country.
Almost a third of the funding — 30% — is earmarked for climate action and environmental sustainability initiatives.
Funding to be channelled via HBOR and intermediaries
HBOR will distribute the money either through direct loans to final beneficiaries or through commercial banks and other eligible financial intermediaries, the EIB said.
“The success of Croatia's economy depends on thousands of companies making investment decisions every day,” EIB Vice-President Marko Primorac stated.
“Our successful cooperation with the EIB continues to deliver tangible benefits for Croatian businesses and the wider economy,” added HBOR Management Board President Hrvoje Čuvalo.
The agreement was signed on the margins of a conference in Zagreb titled "Places to Stay, Regions to Grow: Investing in Croatia," organised by the EIB Group and the European Commission Representation in Croatia.
