The government decided on Friday to request additional financial assistance of €550 million from the SURE instrument and also adopted a decision obliging state-owned companies to pay 60 percent of last year's net profit, and some of them the total net profit, into the 2022 state budget.

Taking into account the increase in public expenditures by €2.2 billion from 1 February 2020 to the end of April 2022 due to national measures taken to address the socioeconomic consequences of COVID-19, Croatia decided to request additional financial assistance from the SURE instrument in the amount of €550 million, Finance Minister Marko Primorac said.

He recalled that SURE, the European instrument for temporary support to reduce the risk of unemployment in an emergency situation, provides extremely favourable financing conditions, given that the European Commission borrows on behalf of the EU on the financial markets, and in this way the benefits of a strong credit rating and low borrowing costs of the EU are used.

He also stated that on 25 October the Council of the EU adopted an amendment to the Implementing Decision of the Council, which approved Croatia’s request for additional financial assistance.

Funds for the repayment of the loan principal and interest payments are provided in the state budget, said Primorac.

The Government’s decision on the payment of last year’s profits into the state budget refers to companies in which the state has a majority share, as well as companies of special interest in which Croatia has a minority share.

The minister decided on two exceptions – the Alan Agency will pay 100% of its 2021 net profit into the state budget, and these funds will be used to modernise the Armed Forces. The other exception is the Hrvatska Lutrija lottery, which will also pay the entire profit it generated in accordance with the provisions of the Law on Games of Chance.