EIB and HBOR unlock EUR 142.5 million credit line for Croatian SMEs

  • EIB and HBOR create a new EUR 142.5 million credit line to support faster recovery of Croatian SMEs from COVID-19;
  • The credit line supports SMEs to maintain liquidity, continue with investments and sustain jobs

 

The European Investment Bank (EIB) and Hrvatska banka za obnovu i razvitak (HBOR) agreed a new credit line of EUR 142.5 million intended for favourable financing of small and medium enterprises. This is the second tranche of a EUR 400 million package for SMEs agreed between the EIB and HBOR.

 

This operation is also a part of the EIB Jobs for Youth Initiative, under which the EU Bank extends terms that are more favourable to companies creating jobs for young people. The Initiative tackles youth unemployment as one of the biggest social and economic challenges for Croatia and Europe alike.

 

EIB Vice President responsible for EIB activities in Croatia, Dario Scannapieco, said: “The EIB continues to support Croatia grow and develop faster, this time by making sure SMEs can continue to fuel faster recovery of the national economy from the COVID-19 pandemic. I am very proud at the speed of the EIB and HBOR support in Croatia, since this is the second operation signed since the beginning of the pandemic in March 2020, by which a total of more than EUR 240 million of favourable funds for the financing of Croatian SMEs and Mid-Caps have been made available. “

 

President of the Management Board of HBOR, Tamara Perko, said: The Loan is intended for the provision of affordable loans to small and medium-sized enterprises in need of funds for maintaining liquidity, preserving jobs and further investing for the purpose of ensuring faster recovery from the consequences of the crisis caused by the COVID-19 pandemic. This Contract is another confirmation of our good cooperation with the EIB and represents an additional source of funding for granting loans at favourable terms and conditions and continued reduction of interest rates charged to entrepreneurs who employ people under the age of 30.“

 

This is the second COVID-19 recovery funding arrangement agreed between the EIB and HBOR in Croatia since the beginning of the pandemic in March 2020. In October, the EIB and HBOR agreed on EUR 100 million COVID-19 credit line for Croatian SMEs and MidCaps.

 

To date the EIB has supported the economic and social development of Croatia by investing EUR 6.71 billion in operations covering the most important sectors of Croatia’s economy, including transport, the environment, energy infrastructure, manufacturing and services. Another key component of EIB activities in Croatia is support for SMEs and MidCaps through creation of long-term financing options in cooperation with local financial institutions. To date, the EIB supported Croatian SMEs by unlocking new sources of finances worth close to EUR 3.75 billion.