HBOR Achieves Strong Growth in Credit Activity in 2023, Approving Over 2800 Loans

For HBOR, the past year was record-breaking not only in the lending segment but also in the area of export insurance business. During 2023, HBOR approved 2,854 loans totaling 1,123 million euros. The most represented users were private business entities, to whom 2,671 loans were approved, accounting for 94 percent of all approved loans, amounting to over 850 million euros. The growing trend of investment activities in the Republic of Croatia is also confirmed by the structure of approved loans, where the share of investment loans reached 65 percent, compared to 46 percent in 2022. The share of fixed-rate loans in the total number of approved loans was 99 percent, and in volume, it was 87 percent.

In 2023, the implementation of new financial instruments from the National Recovery and Resilience Plan (NPOO) continued. At the end of 2022, a new loan program was introduced aimed at specific target groups (youth, women entrepreneurs, and startups), and at the beginning of 2023, contracts for interest rate subsidies were signed with 15 commercial banks. In addition to direct lending and interest rate subsidies, a new guarantee program for medium-sized and large enterprises was introduced, and in cooperation with the European Investment Fund (EIF), the establishment of one or more funds for equity investments in fast-growing companies began. Within the NPOO financial instruments, over 180 projects with a total amount of 260 million euros were supported by the end of 2023, all approved in accordance with sustainability requirements based on environmental, social, and governance criteria (ESG). To comply with the DNSH (Do No Significant Harm) principle, HBOR has developed a special questionnaire that has been accepted by the European Commission.

In export insurance business, HBOR secured export turnover of 672 million euros in 2023, which is a record amount of insured export turnover in one year since the beginning of export insurance operations and a consecutive growth for the fourth year in a row. The insured turnover in 2023 is 79 percent higher than in 2022 and is largely the result of stronger utilization of insurance programs introduced to assist the economy due to the crisis caused by the Russian aggression against Ukraine, as well as securing capital export projects. Under the export insurance program, HBOR supported the export of Croatian goods and services to 48 countries worldwide.

The total business activity of HBOR, which includes credit and guarantee operations, export insurance, and capital investment activities, increased by 43 percent compared to 2022. To strengthen regional presence, a new office was opened in Zadar covering the area of Northern Dalmatia.

– The significant increase in our business activity is the result of HBOR’s very good adaptation to the dynamic economic environment. We are extremely satisfied with the results achieved and the innovations we have introduced, and we will continue in this manner, all with the aim of supporting the development of the Croatian economy – stated Hrvoje Čuvalo, President of the Management Board of HBOR.