500 million euros for Croatia from EIB: Funds go through HBOR

Of 4.3 billion euros in financing that the European Investment Bank (EIB) has allocated in its latest package for companies in nine European countries, 500 million euros pertains to Croatia, confirmed EIB representatives for Lider. The funds are intended for small and medium-sized enterprises and will be channeled through the Croatian Bank for Reconstruction and Development (HBOR), partly directly and partly through commercial banks and other financial intermediaries.

The EIB Board of Directors approved a total of 9.2 billion euros in new financing on August 27 to strengthen European competitiveness, energy transition, and projects outside the European Union. Almost half of this amount, or 4.3 billion euros, relates to financing companies in Croatia, the Czech Republic, France, Greece, Italy, Poland, Romania, Slovakia, and Spain. At the European level, the emphasis is placed on small and medium-sized enterprises from the security and defense, space, energy, and agriculture sectors.

Accessing funds through HBOR and commercial banks

The Croatian portion of the financing will be channeled through HBOR, which will approve part of the loans directly to end users, while part will be distributed through commercial banks and other eligible financial intermediaries.

– Companies will access financing through HBOR or involved financial intermediaries, according to the terms and procedures that HBOR and partner institutions will publish. The credit line is intended for implementation during an allocation period of up to three years from the signing of each tranche, the first of which will be signed in the last quarter of this year – EIB representatives state.

A wide range of business investments should be eligible. The EIB notes that, as with previous credit lines with HBOR, financing will be available for the renovation of existing and construction of new capacities, research and development, purchase of equipment and machinery, and working capital.

No specific quota for the defense industry

Although the EIB emphasized the defense and space sectors in its announcement, the Croatian allocation is not reserved for specific sectors. The funds will primarily be directed towards increasing competitiveness and productivity, green transition, and innovation, so companies from all sectors can generally apply if their projects contribute to these goals.

Companies from the defense and security sector do not have a separate quota within the 500 million euros allocated for Croatia, but they can also apply for financing through HBOR.

Investments can exceed 500 million euros

The EIB notes that the approved 4.3 billion euros represent the amount of EIB financing, not the total value of investments that will be initiated by it. It is expected that these funds will attract additional capital from commercial banks and other private and public sources, so the total value of investments could ultimately be significantly higher.

The same applies to Croatia: 500 million euros represents the amount of EIB financing, while the total value of investments by companies that will be financed by it may be higher.