April 2012

In 2011 the EBRD invested a total of

158 million in Croatia. It extended
a 15 million credit line to Privredna
Banka Zagreb for on-lending to projects
that will enhance the competitiveness of
the SME sector (see case study overleaf).
Similarly, the EBRD-Italy Local
Enterprise Facility (LEF) was launched
in 2009 to help build up local small
enterprises and in 2011 the LEF made
its second investment: a 5.5 million
risk-sharing facility for CityEx acquired
by Bankcroft, an EBRD investee
regional equity fund. This locally-
owned company has successfully
developed nationwide courier services.
The EBRD together with syndication
partners provided nancing to
HEP, the Croatian power utility, for
the construction of the Ombla
hydro-electric power plant. The new
plant will have 68MW capacity to
generate electricity from renewable
resources. The investment will also
help improve power as well as water
supply to the Dubrovnik area.
The EBRD is stepping up its efforts
to promote the generation and use of
green energy in Croatia. It provided
a 5 million loan to Croatias Agrokor
Energa, a leading agribusiness
company in south-eastern Europe, to
support the construction of a combined
heat and power generation facility
in Vrbovec near Zagreb that will use
biogas as primary fuel. This is the
rst biogas project in Croatia and the
rst such project nanced by EBRD
in any of its countries of operations.
Also notable was an 47 million loan
signed with CroControl, the national air
navigation service provider, to nance
an urgent technological update of its
equipment and technology to comply
with service standards as required under
the EU Single European Sky II framework.
Croatia
The EBRD is committed to helping Croatia prepare for its accession
to the EU in 2013, through enhancing the competitiveness of local
companies and improving investment conditions, as well as through
restructuring and modernising the countrys infrastructure.
In particular, the Bank aims to help increase the competitiveness and energy
efciency of small and medium-sized enterprises (SMEs) and supports
enhancing the countrys energy security and commercialising municipal
infrastructure. The EBRDs activities in Croatia are integrated within the
international communitys efforts to promote growth and stability in
south-eastern Europe.
Highlights of 2011
At a glance
Cumulative number of projects
138
Total project value
6.9 billion
Net cumulative business volume
2.6 billion
Cumulative disbursements
2.2 billion
Private portfolio share
63%
Portfolio
1.4 billion
0
100
200
300
400
500
'11 '10 '09 '08 '07 '06 '05 '04 '03 '02 '01
Number of projects Volume ( millions)
0
3
6
9
12
15
EBRD projects 2001-11
The EBRD is increasing the availability of nancing to
the real economy in Croatia with a 20 million loan
to Privredna Banka Zagreb (PBZ) for on-lending to
small and medium-sized enterprises (SMEs). This
follows the successful utilisation of the rst Croatian
Private Sector Support Facility credit line in 2010.
Thanks to the loan, some 80-100 SMEs could benet
from long-term nancing to improve environmental,
health and safety standards, as well as to increase the
product quality in accordance with EU requirements.
This support from the EBRD is key to strengthening
the competitiveness of Croatian companies, affording
them greater access to the EU markets.
The credit line is also supported by the European
Commission, which provides Croatian companies
with nancial incentives and comprehensive technical
assistance. The consultants help the small businesses in
structuring and preparing investment projects in order to
meet EU requirements and obtain nancial incentives.
To date long-term loans, nancial incentives and technical
assistance have been provided to some 40 companies
in Croatia, with operations ranging from processing
seafood to the production of photovoltaic modules.
Country strategy
In its country strategy (2010-13), the
EBRD has placed the highest priority
on regional support for Croatian
corporates, commercial nance of
national and municipal infrastructure,
SME nance and tourism.
In the enterprise sector, the
Bank will focus on enhancing the
competitiveness of local companies
and support their regional expansion.
In the infrastructure and environment
sector, it will work to increase Croatias
energy security, nance municipal
utilities investments without state
guarantee and, in co-operation with
the EU, provide nancial support
for regional transport projects.
Developing the nancial sector
will include providing nancing
for energy efciency projects and
SME investments, as well as trade
facilitation through local banks.
Contacts
EBRD Croatia oce
Miramarska 23
3rd Floor
10000 Zagreb
Croatia
Tel: +385 1 6000 310
Fax: +385 1 6197 218
Director: Zsuzsanna Hargitai
Central and South-Eastern Europe
Managing Director: Jean-Marc Peterschmitt
(based in London)
EBRD Headquarters
One Exchange Square
London EC2A 2JN
United Kingdom
Switchboard: +44 20 7338 6000
Central fax: +44 20 7338 6100
Project proposals
Tel: +44 20 7338 7168
Fax: +44 20 7338 7380
Email: newbusiness@ebrd.com
Country web site
www.ebrd.com/croatia
Strengthening the competitiveness of Croatian enterprises
in EU markets
Sector breakdown of current projects
Corporate 26%
Energy 20%
Financial institutions 24%
Infrastructure 30%
1
1
2
3
4
2
3
4
1 Corporate comprises agribusiness, manufacturing
and services, property and tourism and
telecommunications
2 Energy comprises natural resources and the
power sector
3 Financial sector includes investments in micro,
small and medium-sized enterprises
via nancial intermediaries
4 Infrastructure comprises municipal environmental
infrastructure and transport