The European Council Development Bank has approved 50 million euros for HBOR aimed at financing small and medium-sized enterprises, while 15 million euros from the German development bank KfW will be used to finance water supply and drainage projects.
These loans, despite rising interest rates, were approved under the same conditions as those granted previously. Although the planned issuance of 300 million euros in bonds has been postponed to the second half of 2009, there will be enough funds for the Croatian economy, especially for small and medium-sized enterprises, claims Kovačev. Namely, negotiations with the European Investment Bank regarding a 200 million euro loan have been completed (the contract is expected to be signed in March next year), of which two-thirds, or 150 million, will be invested in small and medium-sized enterprises, while 50 million will remain for large companies, Kovačev announced. This 150 million euros can be utilized in environmental protection and energy efficiency programs.
Kovačev states that they have requested an additional 50 million euros from that bank, and a decision on this is expected at the beginning of the year. Although HBOR’s loans will be about 30 percent less next year, Kovačev believes that this should still meet the needs of the economy, as anyone who has not started investing certainly will not begin a new investment cycle now. In the eleven months of this year, HBOR has approved more than a thousand loans, totaling 5.86 billion kuna, with as much as 59 percent of these funds approved for export and export insurance. The majority of loans HBOR has approved this year have gone to small and medium-sized enterprises, around 2.9 billion kuna, which is an increase of 28 percent. Although conditions in the financial market have tightened and orders for companies are declining, Kovačev asserts that they have no issues with loan repayments. Total payment delays, he says, are only 1.8 percent of total placements and have not worsened compared to previous years. (Gordana Gelenčer)
