The first tranche of 200 million euros for small enterprises arrives from the EIB, with 500 million available

HBOR and EIB have signed a loan agreement that makes up to 500 million euros available for new financing of Croatian SMEs, mid-cap companies, and public sector entities, of which 20 percent is intended for green projects, these financial institutions announced on Friday.

– The contracting parties signed the first tranche in the amount of 200 million euros from the total approved loan of 500 million euros, which is primarily aimed at supporting local small and medium-sized enterprises (SMEs) and mid-cap companies. The agreement will, among other things, assist HBOR in absorbing EU grants and structural funds, and it is expected to help mobilize investments in the Croatian economy amounting to up to one billion euros – the statement emphasized.

The European Investment Bank (EIB) and the Croatian Bank for Reconstruction and Development (HBOR) have agreed that 70 percent of the funds will be directed to small and medium-sized enterprises and mid-cap companies, while the remainder will be intended to support, among others, public sector entities in the country.

Of the total amount, about 20 percent of the new funds is intended for green projects, including sectors such as energy efficiency and clean energy production, sustainable transport, and environmental protection, in accordance with the EIB group’s policy, it was announced.

EIB Vice President Teresa Czerwińska emphasized that HBOR is the leading provider of green financing in Croatia, which is a key priority for the EIB under the Climate Bank Action Plan.

– We appreciate HBOR’s recent progress in this area, especially regarding its environmental and social management systems and standards, and we are pleased to delegate decisions on green financing to it. We are also considering providing free advisory assistance to support the institution in consolidating its role as a leading green financier in the Croatian market – Czerwińska said in a statement conveyed in the announcement.

The President of the Management Board of HBOR, Hrvoje Čuvalo, expressed satisfaction with signing another agreement with the EIB, as the leading financial institution in the field of sustainable financing.

– The funds from this agreement will stimulate the development of small and medium-sized and mid-cap enterprises, as well as public institutions and help the European Union’s transition to carbon neutrality. This agreement reaffirms HBOR’s role as the leading institution in Croatia for financing green projects – Čuvalo stated.