Croatian Bank for Reconstruction and Development published today its audited annual financial statements for 2017 that show the continuation of favourable lending to Croatian business entities, growth of export receivables by 20 percent and the reduction in interest rates.


During 2017, HBOR supported 2,428 projects with an amount exceeding HRK 7.40 billion through lending, insurance of export receivables and issuing of guarantees. 2,183 loans were approved in the total amount of HRK 5.15 billion, of which 76 percent related to financing of investments.


Most of loans under HBOR programmes in 2017 were approved to small and medium-sized enterprises, i.e. 2,093 loans were approved totalling HRK 2.3 billion. For sensitive target groups such as micro enterprises, start-ups, female entrepreneurs and young entrepreneurs, 205 projects were supported with the total amount of HRK 57.82 million.


In 2017, Croatian exporters were backed by HBOR with the total amount of HRK 4.59 billion: under all loan programmes, 377 loans were approved to exporters totalling HRK 2.36 billion and 17 bank guarantees at the request of exporters were approved totalling almost HRK 500 million. In this period, insurance was provided for the Croatian export turnover in the amount of HRK 1.73 billion, a rise by almost 20 percent in comparison with 2016. In 2017, HBOR through its export credit insurance programmes supported exports of Croatian goods and services to 54 countries


New measures and continued reduction in interest rates and fees

These results are partially the result of measures that HBOR started or continued to implement during 2017, of which the most significant ones relate to the decrease in interest rate for new investments by 1 percentage point, for youth employment by 0.5 percentage point and for innovative entrepreneurs by 0.422 or 0.572 percentage points, respectively, depending on the size of enterprise. In 2017, loan application fees charged under all loan programmes were reduced from 0.8 or 1 percent to 0.5 percent. The duration of this measure was extended to include the loans to be approved in 2018.


In 2017, the implementation started of the “ESIF Growth and Expansion Loans” financial instrument intended for small and medium-sized enterprises and of the “ESIF Loans for Energy Efficiency” financial instrument intended for the promotion of investing in energy efficiency and using renewable energy resources in public sector buildings. These financial instruments provide loan funding at very favourable terms and conditions, and the implementation of new financial instruments intended for private sector and farmers was announced for 2018.


The sector of agriculture was supported by almost HRK 300 million, and a number of new measures were adopted in the second half year of 2017 with an objective of increasing investment in agriculture. Family farms were offered loan programmes under favourable terms and conditions that had not been offered before, and interest rates were reduced in order to accelerate the dynamics of drawing-down EU funds.


EUR 500 million of new favourable funds

Owing to the long-lasting and successful cooperation with the international financial institutions, HBOR ensured the continuation of favourable funding of Croatian economic entities by raising more than EUR 500 million in the reporting period.


In 2017, HBOR generated total income of HRK 919.36 million, expenses of HRK 758.58 million and profit of HRK 160.78 million.


In 2017, HBOR Group, comprised of the parent company, Hrvatska banka za obnovu i razvitak, and the subsidiary companies, Hrvatsko kreditno osiguranje d.d. (HKO) and Poslovni info servis d.o.o. (PIS), generated profits after tax in the amount of HRK 162.20 million. Total income amounted to HRK 930.81 million and total expenses stood at HRK 768.61 million.