Photo: HBOR
The Croatian Bank for Reconstruction and Development (HBOR) has signed an agreement with commercial banks for the implementation of a new financial instrument designed to fund energy efficiency and renewable energy investments by entrepreneurs.
Entrepreneurs in Croatia have been given the opportunity to apply for loans for energy efficiency and the use of renewable energy sources, worth a total of EUR 250 million, according to HBOR.
The program encourages entrepreneurs of all sizes and ownership types to invest in energy efficiency and the installation of equipment for the use of renewable energy sources.
One of the most important elements of the program is the possibility of a capital rebate – a write-off of a portion of the loan principal of up to 50%, after meeting set criteria, which makes this credit line extremely attractive, HBOR stressed.
Possibility of writing off part of the loan principal
The agreement was signed with the presidents of the management boards of commercial banks that were selected through a public call: Erste&Steiermärkische Bank, Hrvatska Poštanska Banka, OTP bank, Privredna Banka Zagreb, and Raiffeisenbank Austria.
EUR 125 million has been secured from the European Regional Development Fund, while EUR 125 million is provided by commercial banks, HBOR added.
During the presentation of the program, President of the Management Board of HBOR Hrvoje Čuvalo pointed out that energy efficiency and renewable energy sources are key elements of sustainable development, adding that it represents the foundation of balanced economic growth.
Čuvalo: Public funds are becoming a driver for mobilizing additional capital
He said HBOR continuously develops financial instruments and programs for encouraging new investments and ensures favorable sources of financing for entrepreneurs’ development projects.
This program is another step in that direction because it enables entrepreneurs to make investments that will simultaneously increase their competitiveness and contribute to the green transition of the economy, he asserted.
“Particularly important is the cooperation with commercial banks, which have activated their own funds alongside European ones. In this way, public funds become a driver for mobilizing additional capital from the financial sector, and a total of EUR 250 million is made available to Croatian entrepreneurs,” Čuvalo stressed.
The program is part of a EUR 1 billion financial framework
The financing is part of the Competitiveness and Cohesion Program 2021–2027, managed by the Ministry of Regional Development and European Union Funds.
With current global processes in mind, reducing dependence on fossil fuels is emerging as a necessity and the main priority for ensuring the sustainability of our economy, state secretary of the ministry Zrinka Raguž underscored.
This is why the government has allocated EUR 1 billion via the Competitiveness and Cohesion Program for promoting energy savings and reducing pollution. Notably, EUR 440 million will be approved through financial instruments.
On behalf of the banks, the agreement was signed by Christoph Schoefboeck (Erste&Steiermärkische Bank), Marko Badurina (HPB), Balazs Bekeffy (OTP), Dinko Lucić (PBZ), and Liana Keserić (RBA).
Be the first one to comment on this article.