The EIB and HBOR agree on Covid-19 recovery package for Croatian SMEs and MidCaps

  • The EIB will contribute with EUR 100 million worth agreement that will support Croatian SMEs and MidCaps
  • Whole value of this support will be dedicated for ongoing investments and working capital;
  • The package is a part of the European Union`s Covid-19 economic support for SMEs and MidCaps adopted by the EIB in April 2020;
  • Loans will support SMEs and MidCaps in sectors most affected by pandemic

 

The European Investment Bank (EIB) and Croatian Bank for Reconstruction and Development (HBOR) agreed on a financial package that could enable up to EUR 200 million of support for faster recovery of Croatian SMEs and MidCaps 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 MidCaps, the backbone of the Croatian economy and a major source of employment in the country. The funds will be available to SMEs and MidCaps 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 EUR 100 million to the SMEs and MidCaps in Croatia.

 

Dario Scannapieco, Vice President of the EIB, 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 MidCaps in Croatia and across the EU.”

 

Tamara Perko, President of the Management Board of HBOR, 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 signed in total 23 finance contracts in the total amount of EUR 3 billion, out of which 17 finance contracts worth in excess of EUR 2.8 billion were contracted in support of SMEs and MidCaps in key sectors of national economy including: infrastructure, energy efficiency and environment protection.