The International Finance Corporation (IFC) plans to invest up to one billion dollars in Croatia over the next five years to support the country’s development priorities, which also represents an opportunity for Croatian companies, it was highlighted on Thursday at a conference organized by HUP, IFC, and the Ministry of Finance.
IFC is part of the World Bank Group, and as emphasized by IFC’s Director for Europe Ines Rocha, it operates in over 100 countries, focusing on the private sector, supporting investments, and providing advisory support to companies to help them grow, create new jobs, and operate more sustainably.
– In Croatia, IFC’s portfolio currently amounts to approximately 640 million dollars, and over the next five years, we plan to invest up to one billion dollars to support the country’s development priorities – Rocha emphasized.
She stated that conference participants have the opportunity to learn directly from IFC representatives about the projects they finance at the global and local levels and how Croatian companies can get involved in these initiatives and take advantage of available business opportunities.
Green and blue financing, capital market development…
In this context, there is a special focus on innovative forms of financing in areas critical to the Croatian economy – from investments in the ‘blue’ economy, the development of a circular economy, to modern waste management and strengthening the capital market as a source of alternative financing.
As highlighted at the conference, IFC has supported key projects across Croatia in recent years, including those in the area of green and blue financing with Raiffeisen Bank, sustainable tourism with Maistra, ‘pioneering’ sustainability bonds with Zagrebački holding, and the first Croatian internationally issued green bonds with Erste Bank.
– These initiatives together promote financing in the fight against climate change and blue financing while simultaneously encouraging Croatia’s transition to a more sustainable economy – it was stated.
State Secretary at the Ministry of Finance Stipe Župan said that Croatia, especially in recent years, has made significant progress in key areas of economic development and is committed to improving the business environment.
In this journey, cooperation with international financial institutions also helps, noting that the previous cooperation with IFC has resulted in a total investment value of that institution in Croatia of over 1.8 billion euros, which includes around 600 million euros mobilized for financing 50 private sector projects.
He noted that IFC has financed projects in Croatia in the areas of infrastructure, pharmaceuticals, food, renewable energy, small and medium-sized enterprises, finance, etc.
He mentioned that this is one in a series of similar conferences recently organized with HUP and international financial institutions, such as the European Investment Bank (EIB), the European Bank for Reconstruction and Development (EBRD), and the Asian Infrastructure Investment Bank (AIIB).
The CEO of the Croatian Employers’ Association (HUP) Irena Weber stated that IFC’s mission strongly aligns with that of HUP, which is to encourage investment, increase productivity, create new jobs, and build a competitive and sustainable economy.
The need for further strengthening of the Croatian capital market
Among other things, she emphasized the need for further strengthening and deepening of the Croatian capital market, which has shown ‘particular vibrancy’ recently, in the form of new IPOs.
– It is crucial to expand the ‘range’ of financing options for our companies – Weber stated.
The CEO of the Zagreb Stock Exchange Ivana Gažić said that IFC is an institution that supports developmental and sustainable projects, and has thus been an investor in sustainability-related issues on the Exchange, which have become ‘quite popular’ recently.
She stated that this year is exceptionally positive for the Zagreb Stock Exchange, with an increase in turnover of about 80 percent, and index values up by 30 percent or more compared to last year. Thus, in relation to global trends, the Croatian capital market is performing better, with a significant influx of small investors, Gažić said.
The tourism company Maistra is part of the Adris group, and as stated by the group’s finance director Vitomir Pavlinec, they chose IFC as a partner for financing the long-term development cycle in tourism. In this regard, funds from IFC are primarily intended for financing sustainable projects, such as the reconstruction of the Marjan hotel in Split and the campsite in Vrsar, Pavlinec said.
