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EBRD extends credit line to develop private sector in Republic of Croatia
A leading Croatian private bank will receive long-term funds through a credit line from the European Bank for Reconstruction and Development (EBRD) to finance small and medium-sized private enterprises as well as individuals doing business under their own name. Part of the loan will also be used to finance the purchase of IT equipment. The six-year loan facility in the amount of DM 56 million (ECU 29.7 million) to Zagrebacka Banka d.d. was signed today in London.
Ron Freeman, First Vice President of the EBRD, said: "This loan addresses the need for medium and long-term resources for the Croatian private sector. This is the EBRD's first loan to a financial institution in Croatia, and its first private sector loan to the country. The facility will provide funding of investment projects in both the corporate and retail sectors, thereby facilitating the development of the small and medium-sized private sector. The loan will also contribute to the further development of Zagrebacka Banka, one of the strongest private sector financial organisations in Croatia."
Examples of the use of funds include: modernisation, expansion and diversification of industrial and production facilities; acquisition of shares in the context of privatisation of an enterprise where purchase of shares will improve efficiency through better management; and meeting working capital requirements of industrial and manufacturing clients for production purposes.
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