European Investment Bank's financing for Croatia jumps to 1.2% of GDPStaff Writer | February 23, 2017
The European Investment Bank (EIB) granted new loans worth EUR 530m and the European Investment Fund (EIF – together with EIB forming the EIB Group) implemented operations in Croatia amounting to EUR 16m in 2016.
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Total EIB Group financing in Croatia equates to 1.2% of the country’s GDP, the third highest figure among EU Member States.
EIB Vice-President Dario Scannapieco, who presented the results in Zagreb today and pledged to maintain the high level of EIB involvement in Croatia in the future, commented: "Last year was a successful year for the EIB in Croatia, where we signed loans totalling EUR 530m, representing a 50% increase compared to 2015. In the coming years, we will focus on catalysing private capital and implementing projects entailing higher risks."
Under the Investment Plan for Europe (IPE) in 2016 the EIB signed the first operation in Croatia guaranteed by the European Fund for Strategic Investments (EFSI), set up as part of the IPE.
This operation represents a EUR 50m guarantee with HBOR (Hrvatska Banka za Obnovu i Razvitak, wholly owned by the Republic of Croatia) aiming to generate new finance for midcap companies and other priority projects in Croatia in the future.
It is structured as a risk-sharing instrument to cover up to 50% of the credit risk associated with a portfolio of existing loans outstanding on HBOR's balance sheet.
With the resources made available by the guarantee, HBOR will be able to grant new loans of up to EUR 100m to midcaps and other eligible promoters.
The proposed guarantee instrument is designed to enable the financial intermediary to provide new loans for midcaps. ■