The European Investment Bank (EIB) announced the lending of €250 million to the Croatian Bank for Reconstruction and Development to finance smaller projects promoted by small and medium-sized enterprises (SMEs), mid-cap companies and municipalities in Croatia.

€250 million will be lent by the European Investment Bank (EIB) to the Croatian Bank for Reconstruction and Development (HBOR - Hrvatska banka za obnovu i razvitak) to finance smaller projects promoted by small and medium-sized enterprises (SMEs), mid-cap companies and municipalities in Croatia. In December 2012, €46,8 million were allocated by the EU to help Croatia to become a successful EU Member State.

The loan will finance projects of SMEs and medium-sized companies in the areas of industry and services, including tourism, and also support small and medium-scale infrastructure schemes promoted by local authorities. It will also co-finance projects in the knowledge and technology-intensive sectors and additional priorities such as energy and environmental protection. A minimum of 70% of the loan amount is envisaged to be allocated to SMEs and mid-cap companies.

The EIB has already granted credit lines to HBOR totalling some €1.1 billion. Previous loans have either been successfully disbursed or are in the process of allocation to final beneficiaries. The EIB also stressed that this credit line is being provided under the Joint IFI Action Plan for Growth in Central and South Eastern Europe, which is focused on providing better access to long-term finance for Europe's SMEs to help mitigate the effects of the financial crisis. Those funds will support growth by fostering economic restructuring, consolidation and diversification, as well as enhancing long-term competiveness through the increased availability of long-term credit.