The European Investment Bank (EIB) Group in 2021 secured €760 million to support Croatia's economy, and in 2022 and the years to come emphasis will be put, among other things, on increasing energy independence with investments in renewable energy sources and liquefied natural gas, state agency Hina said on Tuesday, citing a press release.
In 2021 the EIB invested €113 million and the European Investment Fund (EIF), as the other component of the EIB Group, a record €647 million, with total investments by that EU bank in all key economic sectors in Croatia since 2001 having thus reached €7.2 billion, the bank’s officials said at a working breakfast organized by that financial institution in Zagreb on Tuesday.
The so far biggest volume of EIF activities in Croatia is based on guarantees issued to state and commercial banks as part of the European Guarantee Fund, worth €650 million. This has supported the launch of new credit lines for small and medium businesses, with the aim of preserving jobs and helping businesses recover from the consequences of the coronavirus pandemic, it was said.
The EIB invested €63 million in the Croatian Power Company (HEP), thus supporting the company’s programme of investment in renewable energy sources, which are considered crucial for building energy independence at an accelerated pace, both in Croatia and the EU.
The EIB also secured an additional €50 million in EIF guarantees for the Croatian Reconstruction and Development Bank (HBOR) to improve financing conditions for medium-capitalised and big Croatian companies. EIB Group Croatia office head Anton Kovacev said the EIB’s emphasis in Croatia this year and in the years to come would be on the European Green Deal and the fight against climate change, notably financing of renewable energy sources, energy efficiency and new energy sources.
In the context of Russia’s aggression on Ukraine, Kovacev particularly underlined the importance of energy independence, both for Croatia and the EU. He said that intensive talks were already underway on new projects for renewable energy sources, saying only that they concerned hydrogen.
Asked about the nuclear power plant in Krsko and the possible construction of a new plant block, Kovacev said the EIB could finance such energy on the condition “the highest level of safety” was secured. Considering the role of the EIB as the EU’s climate bank, since early 2022 the bank has not been participating in financing projects based on fossil fuels.
In line with the strategy of increasing energy independence as much as possible, Kovacev said that the EIB was willing to finance the construction of new LNG terminals, both in Croatia and in other EU countries. He also noted that the group would not neglect other priorities, such as digitization and innovation.
Kovacev said the bank wanted to help all enterprises opting for investments in new products and services or the improvement of the existing ones, as a way of helping to boost the competitiveness of the Croatian economy, but that it would also provide support for the state and public sectors.
