Croatia: EIB and HBOR agree on COVID-19 recovery package for SMEs and mid-caps
1 October 2020
The EIB will invest €100 million to support COVID-19 recovery of Croatian SMEs and mid-caps, and their ongoing investments and working capital.
The package is a part of the European Union’s Covid-19 economic support for SMEs and mid-caps adopted by the EIB in April 2020.
Loans will support SMEs and mid-caps in the sectors most affected by the pandemic.
The European Investment Bank (EIB) and Croatian Bank for Reconstruction and Development (HBOR) have agreed on a financial package that could enable up to €200 million in loans for faster recovery of Croatian SMEs and mid-caps from the COVID-19 pandemic.
The package will unlock a new source of more affordable loans to support ongoing investments plans or provide much-needed working capital for Croatian SMEs and mid-caps, the backbone of the Croatian economy and a major source of employment in the country. The funds will be available to SMEs and
mid-caps operating in sectors most affected by pandemic.
The EIB investment is part of the European Union’s COVID-19 economic support for European SMEs approved by the EIB in April 2020, shortly after the outbreak of the pandemic. Under the signed agreement, the EIB will contribute €100 million to the SMEs and mid-caps in Croatia.
EIB Vice President responsible for EIB activities in Croatia, Dario Scannapieco, said “Successful and growing SMEs are crucial for a faster and sustainable recovery of the Croatian economy from Covid-19, which is why we are proud to support their business plans with a new source of finance. This loan is part of a comprehensive EU-wide economic response to the pandemic, and the EIB continues to deliver a tangible, real support to Croatia and its economy in its time of need. I also welcome the recent decision by the Croatian Government to join the EIB Pan-European Guaranty Fund. I hope Parliament will endorse the decision which will create new opportunities for faster recovery of SMEs and mid-caps in Croatia and across the EU.”
President of the Management Board of HBOR,Tamara Perko, said: „Since the end of March, HBOR has, within the framework of COVID-19 measures, approved loans in the total amount exceeding HRK 1 billion to companies affected by the pandemic. The funds for working capital loans from HBOR's sources are approved at an interest rate from 0%, and the contract signed today will provide us with an additional source to continue implementing such favourable lending conditions.“”
Since 2001, the EIB and HBOR have signed 23 financial contracts worth € 3 billion, including 17 financial contracts worth in excess of € 2,8 billion in support of SMEs and mid-caps in key sectors of the national economy including: infrastructure, energy efficiency, and environmental protection.
The EIB in Croatia:
To date the EIB has supported the economic and social development of Croatia by investing € 6,71 billion in operations covering the most important sectors of the national economy, including transport, the environment, energy infrastructure, manufacturing and services. Another key component of EIB activities in Croatia is support for SMEs and mid-caps through the creation of long-term financing options in cooperation with local financial institutions. To date, the EIB has supported Croatian SMEs by unlocking new sources of finances worth close to € 3,75 billion.
The EIB and Croatian Bank for Reconstruction and Development (HBOR) agreed today to support recovery of Croatian SMEs and mid-caps from COVID-19 pandemic with up to €200 million in flexible, more affordable loans.
Croatian small and medium-sized enterprises (SMEs) will benefit from a new €142.5 million credit line agreed between the EIB and the Croatian Bank for Reconstruction and Development (HBOR) signed today in Zagreb and Luxembourg. This is the second tranche of a €400 million package for SMEs agreed between the EU bank and HBOR.
The European Investment Bank Group (EIB Group) provided €530 million in loans, equity and guarantees to clients in Croatia in 2020. The two parts of the EIB Group, the European Investment Bank (EIB) and the European Investment Fund (EIF), invested €342.5 million and €187.9 million, respectively, making 2020 a record year for the EIF in Croatia.