HBOR achieved a strong growth of lending activity in 2023
In 2023, HBOR granted over 2,800 loans in the total amount over EUR 1.1 billion, which is an increase in volume by 31 percent, and by 22 percent in number compared to the previous year
Last year was a record year for HBOR, not only in the segment of lending, but also in the field of export credit insurance. During 2023, HBOR approved 2,854 loans in the total amount of EUR 1,123 million. Most borrowers were private business entities, to which 2,671 loans were granted, which is 94 percent of the total granted loans in the total amount of over EUR 850 million. The growing trend of investment activities in the Republic of Croatia is confirmed by the structure of approved loans, in which the share of investment loans reached the level of 65 percent, as compared to 2022, when it amounted to 46 percent. The share of loans with a fixed interest rate in the total number of approved loans was 99 percent, and in volume 87 percent.
During 2023, the implementation of new financial instruments under the National Recovery and Resilience Plan (NRRP) continued. At the end of 2022, a new loan programme intended for special target groups (youth, female entrepreneurs, and start-ups) was introduced, and at the beginning of 2023, interest rate subsidy contracts were signed with 15 commercial banks. In addition to direct lending and subsidising of interest rates, a new guarantee programme for mid-caps and large companies was introduced, and in cooperation with the European Investment Fund (EIF), the establishment of one or more funds for equity investments in fast-growing companies began. Until the end of 2023, more than 180 projects were supported with an amount of EUR 260 million under the NRRP financial instruments, and all the projects were approved in compliance with sustainability requirements according to environmental, social and management criteria (ESG). For the need of compliance with the DNSH (Do no significant harm) principle, HBOR has designed a special questionnaire that was accepted by the European Commission.
As for export credit insurance business, in 2023, HBOR insured export turnover in the amount of EUR 672 million, which is a record amount of insured export turnover in one year since the start of export credit insurance business, and consecutive growth for the fourth year in a row. Insured turnover in 2023 was 79 percent higher than compared to 2022 and is for the major part the result of a stronger utilisation of export credit insurance programmes introduced to help the economy due to the crisis caused by the Russian aggression against Ukraine, as well as the insurance of capital export projects. During 2023, under its export credit insurance programmes HBOR supported the export of Croatian goods and services to 48 countries worldwide.
The total business activity of HBOR, which includes lending and guarantee operations, export credit insurance and capital investment operations, increased by 43 percent compared to 2022. In order to strengthen regional presence, a new office was opened in Zadar that covers the area of Northern Dalmatia.
"The significant increase in our business activity is the result of HBOR’s very good adjustment to the dynamic economic environment. We are exceptionally satisfied with the results achieved and innovations we have introduced, and we will continue to do so, all with the aim of providing support for the development of the Croatian economy," said Hrvoje Čuvalo, President of the Management Board of HBOR.
Last year was a record year for HBOR, not only in the segment of lending, but also in the field of export credit insurance. During 2023, HBOR approved 2,854 loans in the total amount of EUR 1,123 million. Most borrowers were private business entities, to which 2,671 loans were granted, which is 94 percent of the total granted loans in the total amount of over EUR 850 million. The growing trend of investment activities in the Republic of Croatia is confirmed by the structure of approved loans, in which the share of investment loans reached the level of 65 percent, as compared to 2022, when it amounted to 46 percent. The share of loans with a fixed interest rate in the total number of approved loans was 99 percent, and in volume 87 percent.
During 2023, the implementation of new financial instruments under the National Recovery and Resilience Plan (NRRP) continued. At the end of 2022, a new loan programme intended for special target groups (youth, female entrepreneurs, and start-ups) was introduced, and at the beginning of 2023, interest rate subsidy contracts were signed with 15 commercial banks. In addition to direct lending and subsidising of interest rates, a new guarantee programme for mid-caps and large companies was introduced, and in cooperation with the European Investment Fund (EIF), the establishment of one or more funds for equity investments in fast-growing companies began. Until the end of 2023, more than 180 projects were supported with an amount of EUR 260 million under the NRRP financial instruments, and all the projects were approved in compliance with sustainability requirements according to environmental, social and management criteria (ESG). For the need of compliance with the DNSH (Do no significant harm) principle, HBOR has designed a special questionnaire that was accepted by the European Commission.
As for export credit insurance business, in 2023, HBOR insured export turnover in the amount of EUR 672 million, which is a record amount of insured export turnover in one year since the start of export credit insurance business, and consecutive growth for the fourth year in a row. Insured turnover in 2023 was 79 percent higher than compared to 2022 and is for the major part the result of a stronger utilisation of export credit insurance programmes introduced to help the economy due to the crisis caused by the Russian aggression against Ukraine, as well as the insurance of capital export projects. During 2023, under its export credit insurance programmes HBOR supported the export of Croatian goods and services to 48 countries worldwide.
The total business activity of HBOR, which includes lending and guarantee operations, export credit insurance and capital investment operations, increased by 43 percent compared to 2022. In order to strengthen regional presence, a new office was opened in Zadar that covers the area of Northern Dalmatia.
"The significant increase in our business activity is the result of HBOR’s very good adjustment to the dynamic economic environment. We are exceptionally satisfied with the results achieved and innovations we have introduced, and we will continue to do so, all with the aim of providing support for the development of the Croatian economy," said Hrvoje Čuvalo, President of the Management Board of HBOR.