Project number:


Business sector:


Notice type:


Environmental category:


Approval date:

29 May 2002



PSD disclosed:

25 Apr 2002

Project Description

A short-term working capital facility provided to a portfolio of local Croatian agricultural processors, traders and primary agricultural producers via an unfunded participation agreement with ZABA, Croatia's leading commercial bank.
Project objectives:
  • To support the implementation of seasonal credits for the agribusiness sector in Croatia, backed by agricultural commodities as collateral.
  • To provide additional comfort to ZABA and potential sub-borrowers in this relatively new form of agribusiness lending in Croatia.
  • To work together with the Croatian Ministry of Agriculture to approve and implement appropriate warehouse receipt legislation.

Transition Impact

Due to the strong reliance on Government funding in the Croatian agricultural sector, the transition impact mainly stems from:
  • The introduction of commercial lending to the Croatian agricultural sector to agribusiness processors, primary agricultural producers and grain traders, most of which have been unable to secure financing from commercial sources to date.
  • Pre-Law financing: The Facility directly supports the government’s initiative to create a fully functional warehouse receipt law expected to be operational for the 2003 season. The Facility will (i) act as a practical example of agricultural commodity financing; and (ii) help to build the participants’ trust in the institutional building process.
  • Institutional Dialogue: In parallel with this Facility, the Bank initiated an institutional policy dialogue with the Croatian authorities regarding the creation of the legal framework for warehouse receipt lending and related infrastructure.

The Client

The clients are small to medium size agricultural enterprises that will be managed as a portfolio through an agent Bank. Zagrebacka, (ZABA) Croatia's leading Bank, will administer the individual loans. The EBRD and ZABA will participate in a risk-sharing scheme providing working capital financing to these local agricultural processors, traders and farmers in Croatia.

EBRD Finance

Kuna 186 million (€25 million) risk sharing facility with ZABA.

Project Cost

Total lending under the facility will not exceed Kuna 531.2 million (€71.4 million).

Environmental Impact

ZABA will require that borrowers are compliant with applicable national standards for environment, health and safety and ensure that borrowers are not engaged in activities listed on the Bank’s Environmental Exclusion List. Storage facilities for agricultural commodities will be checked to ensure that they comply with regulatory requirements.

Technical Cooperation

The Bank is intending to provide ZABA with a credit adviser who will review and amend ZABA’s procedures for lending against agricultural commodities and assist with general training on the assessment of agribusiness companies.
The technical assistance is intended to be provided through the Bank’s framework with ACDI/VOCA.

Company Contact


Business opportunities

For business opportunities or procurement, contact the client company.

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General enquiries

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