The Croatian Bank for Reconstruction and Development (HBOR) concluded a Club Loan Agreement amounting to two billion kuna with seven commercial banks at the end of last week, which will be used to finance government measures for economic recovery and development under “Model A,” it was announced by HBOR.
The borrower of the loan is HBOR, and Erste & Steiermaerkische Bank, Croatian Postal Bank, Hypo Alpe-Adria-Bank, Privredna Banka Zagreb, Raiffeisenbank Austria, Societe Generale-Splitska Bank, and Zagrebačka Bank are the leading mandated arrangers and lenders, while Privredna Banka Zagreb is also the loan agent. The loan is approved for financing government measures for economic recovery and development from January 14 under Model A – a model for financing sustainable economic projects with active state participation in co-financing bank loan placements. The total amount of two billion kuna that domestic commercial banks are granting to HBOR is secured by the release of funds from commercial banks based on the decision of the Croatian National Bank (HNB) from February 3, which reduced the reserve requirement rate from 14 percent to 13 percent. In addition to the mentioned banks – the leading mandated arrangers, other banks from Croatia will also be able to participate in the club loan, allowing them to compete for loan quotas at HBOR’s auctions. (H)
