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€71 million for Croatian agribusiness sector
New risk-sharing scheme with Zagrebacka Banka makes finance more flexible
The EBRD and Zagrebacka banka (ZABA), Croatia’s leading retail and commercial bank, are extending their efforts to make finance more easily available to the country’s agribusiness sector, including processors and traders. A joint risk-sharing facility worth up to €71.4 million (HRK 535 million) – of which the EBRD portion is €25 million – will make loans available to these enterprises for the 2003/2004 crop season.
The facility, nearly identical to one that was successfully extended last year, is based on the principles of warehouse-receipt financing. The EBRD has been working closely with Croatia on a new warehouse receipt law, which is expected to simplify procedures for owners of agricultural commodities to use those commodities as collateral for loans, and thus gain access to working capital.
Hans Christian Jacobsen, EBRD Director of Agribusiness, said the Bank has been pleased with the good cooperation with ZABA, and that implementation of the warehouse receipt law in Croatia would be a significant achievement that would only enhance their work. Damir Odak, member of ZABA’s management board, said he was satisfied with the development of the scheme and looking forward to the implementation of the law this year. ZABA is well prepared to expand its lending against agricultural commodities following its continuing cooperation with the EBRD, he added.
The EBRD and ZABA have been working together since 1995. ZABA, owned by the Italian bank UniCredito Italiano and the German insurance company Allianz, has over €7.2 billion in assets. Its strong presence in the Croatian market has been built through prudent lending procedures and sound business judgement.
The EBRD has signed 181 projects worth €3 billion to assist the agribusiness sector throughout the Bank’s 27 countries of operations.
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