Croatian entrepreneurs are increasingly recognizing the advantages that sustainable investments bring them. Sustainable business practices are rightly considered an insurance against future challenges such as regulatory changes, the climate crisis, and shifts in market demand. Sustainable projects deserve the support of investors, the state, and the broader community in which we live. In this context, the Croatian Bank for Reconstruction and Development strongly supports investments in sustainable projects.
HBOR has so far supported more than 140 sustainable projects with a total amount of nearly 170 million euros, directing funds into investments aimed at mitigating climate risks.
As an institution responsible for implementing the European Union-funded National Recovery and Resilience Plan (NPOO), HBOR is currently implementing six financial instruments with a total value of 255.5 million euros. Funds from the NPOO are approved according to the DNSH principle (do no significant harm), i.e., based on investments that do not have negative impacts on climate, the environment, the natural ecosystem, water, and other goals from the European Green Deal. Entrepreneurs have access to favorable loans, interest subsidies, guarantees, and equity investments.
Large investments in sustainable projects are not only part of the implementation of the strategic goal of achieving climate neutrality but also a way to strengthen the resilience of the Croatian economy. The high resilience of the Croatian economy demonstrated in crises such as the COVID-19 pandemic and the war in Ukraine has resulted, among other things, in an increase in Croatia’s credit rating.
Strong support for exports
At the same time, HBOR, through its counter-cyclical actions, enabling entrepreneurs access to financial instruments such as those offered under the so-called COVID measures or financing the operations of entrepreneurs exposed to the war conflict in Ukraine, has mitigated the impacts of the two crises on business. Additional effects on the Croatian economy have come from entries into the Eurozone and Schengen. However, there are no shortages of threats in the broader environment. The public is well aware that we live in an era of significant inflationary pressures, which we cannot ignore, although analyses show that inflation rates will decrease, and thus slow the growth of interest rates.
For Croatia, particularly negative economic trends recorded in some of our most important export markets, primarily Germany, are especially important. Negative economic trends in Germany, a key export partner, highlight the need for diversification. Croatian exports of goods, as well as services, and tourism, largely depend on the growth and recovery of the German economy, so I believe that entrepreneurs are paying close attention to everything happening in that extremely important market for us. Therefore, Croatian entrepreneurs need to strengthen their position in other European Union markets, as well as in markets outside it, where they can count on strong support from HBOR, which will enable them to reduce the risks of entering new markets with its products and services. Increased diversification of Croatian exporters will further strengthen the resilience of the domestic economy.
