The Croatian Bank for Reconstruction and Development (HBOR), in cooperation with the Ministry of Regional Development and EU Funds, has developed a new financial instrument, the Urban Development Fund, the implementation of which officially began at the end of last week.

The Urban Development Fund represents an innovative solution for financing public infrastructure projects that are enriched with commercial content and thus enable the generation of revenue from service fees, HBOR announced on Monday.

The fund supports projects that promote environmental protection, energy efficiency and the use of renewable energies, as well as the construction of multifunctional facilities for sport, tourism, culture and business.

The fund comprises a combination of loans and grants, whereby the repayment waiver can amount to up to 50% of the total loan amount and is achieved by fulfilling criteria of sustainability, aesthetics and inclusivity.

The repayment period is up to 15 years, including a grace period of up to 12 months. The minimum loan amount is €100,000 and the maximum is €10 million.

The loan is a combination of funds from the European Regional Development Fund with a fixed interest rate of 0% per annum and funds from HBOR, whose interest rate is set quarterly and amounts to 3.52% per annum and fixed until 30 June.

This initiative is in line with HBOR’s strategy, which focuses on supporting regional development and sustainable projects, particularly in connection with financing from EU funds and the National Recovery and Resilience.