New loan agreed to help with reconstruction, upgrades and MSME finance.
The Council of Europe Bank (CEB) has issued a €200m loan to the Croatian Bank for Reconstruction and Development (HBOR) to help the country after a devastating 2020.
While Croatia struggled through the global pandemic in 2020 it was also hit with two major earthquakes – one in Zagreb in the spring and another in Petrinja in the winter. Alongside the terrible toll on local people, this has left tens of thousands of buildings and significant infrastructure in need of urgent repair or reconstruction.
The impact on Croatia’s economy has also been severe. The CEB loan is intended to help municipalities, cities, and counties to respond to diverse socio-economic challenges by financing sustainable investments in infrastructure against the backdrop of a sharp recession.
The funding will also support co-financed infrastructure projects with the European Union (EU) and is expected to help to preserve and maintain employment by ensuring some of the investments and working capital reach young people, women and start-up businesses.
The governor of the CEB, Rolf Wenzel, said: “Assisting local communities with their social and emergency investments and ensuring financing for micro, small and medium-sized enterprises (MSMEs) are two priority areas for the CEB. Enabling EU-funded investments in our member states represents another priority area. We are pleased to be able to continue working with the HBOR and, thus, to ensure a part of the financial resources needed for such priorities, in a joint effort to contribute to Croatia’s inclusive and sustainable recovery.”
Croatia joined the CEB in June 1997 and to date has benefited from more than €1bn in financing to support key investments in health, urban and rural infrastructure, flood prevention measures and MSMEs.
