The Croatian Bank for Reconstruction and Development (HBOR) has approved more than 2,800 loans totalling over 1.1 billion euros by 2023. This represents a 31% increase in value and a 22% increase in the number of loans compared to the previous year, HBOR reported on Monday.

“Last year, HBOR achieved record results not only in the credit sector, but also in the export insurance business. In 2023, HBOR approved 2,854 loans totalling 1.123 billion euros,” HBOR said in a press release.

Most of the borrowers were private companies, which accounted for 94% of the total approved loans of more than 850 million euros with 2,671 approved loans.

New financial instruments

According to HBOR, the growing investment activity in Croatia is also reflected in the structure of approved loans. with the share of investment loans reaching 65%, compared to 46% in 2022. The share of loans with fixed interest rates in the total number of approved loans was 99%, and by value they accounted for 87%.

The implementation of new financial instruments under the National Recovery and Resilience Plan (NPOO) continued in 2023. A new loan programme for specific target groups (young people, female entrepreneurs and beginners) was introduced at the end of 2022 and 15 commercial banks signed contracts for interest rate subsidies at the beginning of 2023.

A new guarantee programme for mid-cap and big-cap companies was also introduced, according to the HBOR, which has started to set up one or more funds for equity investments in fast-growing companies in cooperation with the European Investment Fund.

HBOR insures exports worth 672 million euros

By the end of 2023, more than 180 projects worth 260 million euros had been supported under the NRRP, all of which were approved in accordance with sustainability requirements based on environmental, social and governance (ESG) criteria.

In the area of export insurance, HBOR insured exports totalling 672 million euros, a record amount of insured export turnover in a single year and continued growth for the fourth consecutive year, the bank said.

HBOR’s total business activity, including credit and guarantee business, export insurance and investment activities, increased by 43% compared to 2022, the bank said. To strengthen its regional presence, it has opened a new office in Zadar, covering the area of northern Dalmatia.