HBOR Receives Half a Billion Euro Loan for Small Enterprises

The European Investment Bank (EIB) has approved a loan of half a billion euros to the Croatian Bank for Reconstruction and Development (HBOR), marking the largest loan approval in HBOR’s history.

Today in Zagreb, the contract for the first tranche of the loan worth 250 million euros was signed by EIB Vice President Anton Rop and HBOR Chief Anton Kovačev. 

The mentioned loan is intended for financing small and medium-sized enterprises as well as all infrastructure projects in the public sector. Kovačev did not hide his satisfaction with the approved loan amount, especially considering that the first loan EIB approved to HBOR in 2001 was only 10 million euros.
– The new borrowing only confirms the fact that HBOR has gained significant reputation with special financial institutions. I note that last year we disbursed loans worth over ten billion kuna or 65 percent more than the previous year, thus concluding a record year. The new funds will further contribute to initiating the investment cycle, retaining and creating jobs, concluded Kovačev.
The loan conditions with EIB are offered with a maturity of 15 years, including a 5-year grace period for infrastructure projects and 12 years, including a 4-year grace period for loans to small and medium-sized enterprises and medium-capitalized companies. Interest rates can be fixed annually in the range of 2.6-2.7 percent or variable, which includes Eurobor plus 100 to 120 basis points.
Rop also expressed satisfaction with the cooperation with HBOR, discussing further lending opportunities with Finance Minister Slavko Linić, who was also present at the loan signing ceremony.
– Our desire is to prepare Croatia for the most efficient entry into the European Union. EIB can greatly assist in this as we were recapitalized last year with ten billion euros, based on which we will disburse 60 to 70 billion euros in new loans to EU member states. Part of that money will also be drawn by Croatia, claims Rop.
Among the projects that could be financed in the second tranche of the half a billion euro loan, Rop highlighted projects in the renewable energy sector for which 200 million euros are being prepared. An additional 150 million euros will go to energy efficiency projects and 50 million euros for the renovation of the hospital in Pula. 

Linić emphasized how exceptionally good it is that HBOR can offer loans below market conditions in a difficult crisis: 
– Last year, through the disbursed ten billion in loans, HBOR managed to invest in the development and investments of companies instead of in working capital. Half a billion euros will be enough for us to monitor the needs of small and medium-sized enterprises, while EIB will greatly assist us in preparing to draw funds from the EU cohesion funds, he added.