The European Investment Bank (EIB) Group said its new financing in Croatia reached a record level of €1.24 billion last year, with major support aimed at greening transport, cities and businesses.
The total financing for 2024 included €937 million from the EIB and €303,2 million from the European Investment Fund (EIF), which focuses on small and medium-sized enterprises (SMEs) as well as mid-caps in Europe.
“EIB Group financing in Croatia last year amounted to 1.4% of its gross domestic product (GDP), whereof a third dedicated to the support of Croatian SMEs and Midcaps throughout the intermediation of the Croatian banking system,” said EIB Group.
“The level of support rose 167% from €464 million in 2023.
“The largest EIB loan signed last year was a €400 million financing to the Croatian government to upgrade and expand rail infrastructure and services throughout the country – part of a €900 million agreement that marks the EIB’s largest-ever financing operation in Croatia.
“Other key initiatives included EIB loans of €207 million to the city of Zagreb to promote renewable energy, affordable housing and public transport, €200 million to the Croatian Bank for Reconstruction and Development, or HBOR, to expand green and other financing for a range of companies and €30 million financing for the increase of renewable energy production (Kiepach/ Go Green project) implemented by HEP.”
EIB Vice-President Teresa Czerwińska said: “Our record investments in Croatia in 2024 are a testament to our unwavering commitment to the country’s sustainable growth.
“We are deepening our engagement, unlocking new financing for businesses, modernising critical infrastructure and promoting innovation.
“Working closely with national and local authorities as well as with private-sector partners, we are helping to build a greener, more competitive and resilient Croatia.”
The latest annual results bring total EIB Group financing in Croatia over the past five years to almost €3.1 billion.
Last year, projects to advance climate action and environmental sustainability in Croatia received EIB Group support totalling €721 million.
The €400 million loan to the Croatian government in 2024 is meant to improve rail travel for 22 million passengers annually, accelerate regional development, encourage a shift away from road transport and reduce emissions that cause climate change.
The €207 million loan to Zagreb reflects increased EIB Group support for Croatian cities to promote cleaner energy, urban mobility and essential cultural and social infrastructure such as schools, kindergartens and affordable housing. Such financing also helps cities absorb faster the grants from the European Union.
In response to a rising need for affordable homes, the EIB last year also agreed to provide advisory services to five major Croatian cities: Zagreb, Split, Rijeka, Osijek and Varaždin. The goal is to help expand social housing and promote inclusive urban development.
In the area of business financing, the €200 million loan to HBOR is part of a €500 million approved commitment to help Croatian companies lower their carbon footprint and become more sustainable. The EIB is also advising HBOR and other key financial institutions in Croatia on enhancing their green-funding capacity.