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ZABA and EBRD extend cooperation
Flexible finance to support Croatia’s agribusiness sector
The EBRD and Zagrebacka banka (ZABA), Croatia’s leading retail and commercial
bank, are renewing their efforts to make finance more easily available to the
country’s agribusiness sector. A joint risk-sharing facility worth up to €71.4
million (HRK535 million) – of which the EBRD portion is €25 million– will make
loans available for the 2004/2005 crop season. The finance will be especially
welcome after last year’s harvest, which was hard hit by difficult weather
conditions.
The facility, now in its third year, is based on the concept of
warehouse-receipt financing. The EBRD is working with the Government of
Croatia on a warehouse receipt law, which will simplify the 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, noted the renewal of
the agreement with ZABA demonstrated the good cooperation between the two
partners. He emphasised that the renewed facility will increase the types of
commodities incorporated and will include wheat, corn, barley, rapeseed,
sunflower seeds, soya beans, sugar beet and edible crude oil.
The EBRD and ZABA, owned by the Italian bank UniCredito Italiano and the
German insurance company Allianz, have been working together since 1995.
Throughout the Bank’s 27 countries of operations, the EBRD has signed 212
projects worth €3.25 billion to assist the agribusiness sector.
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