Interest in investment loans continued in first half 2023
In the first six months of 2023, the Croatian Bank for Reconstruction and Development supported 1,791 projects in the total amount of EUR 834 million, an increase of 73 percent in the number of supported projects, or 7 percent in the amount, compared to the same period last year. The largest part of HBOR's activities related to lending to private and public entities, but a significant volume was achieved also in export credit insurance activities, mostly under the measure intended to facilitate the operations of entrepreneurs affected by the war in Ukraine.
In the first six months of this year, HBOR approved more than 1,400 loans in the amount exceeding EUR 550 million, which is 10 percent more than in the same period 2022. In terms of the number of approved loans, almost 70 percent related to investment loans, and in terms of the amount, the share of investment loans stood at 59 percent. The trend of an increase in investment loans started at the end of 2022 and has continued throughout the year. In export credit insurance activities, a volume of EUR 255 million was achieved, an increase of 4 percent compared to the first half of the last year.
In addition to the measures related to the war in Ukraine, HBOR's operations in the first half of 2023 were also marked by the implementation of the National Recovery and Resilience Plan, under which 34 investments worth EUR 61.4 million were supported. Besides new investments under the NRRP, in the framework of the financial instruments implemented by HBOR under the NRRP, a new Operational Programme for the Implementation of the Financial Instrument of the Guarantee Fund for Loans to Medium Market Capitalisation Entities and Large Business Entities was introduced in the first half of the year, whereby HBOR started issuing guarantees for large and mid-cap companies for and on behalf of the Republic of Croatia.
"The National Recovery and Resilience Plan largely reflects the news in HBOR's operations in the past period. We started the year by entering into an agreement with fifteen commercial banks on cooperation in subsidising interest from NRRP funds, and continued by stepping into the area of issuing guarantees for large and mid-cap companies. All measures related to the NRRP are aimed at encouraging new investments in the start-up, modernisation and digitalisation of operations, in the implementation of new technologies, investments in research and development as well as in environmentally friendly production processes. Therefore, it is a highly development-oriented programme, and we are proud that HBOR has been assigned the task of implementing the programme in the Republic of Croatia", said Hrvoje Čuvalo, President of the Management Board of HBOR, on the occasion of the announcement of the semi-annual results.
With the aim of stronger internationalisation of the Croatian economy, the Croatian Bank for Reconstruction and Development has, starting from this year, enabled entrepreneurs to finance the purchase of business shares of foreign companies. Taking into account that the purchase of shares of a company that already operates in one of the export markets, which has a well-established business as well as necessary permits and certificates, can be a simpler and faster way of entering the foreign market, HBOR will finance transactions by which exporters registered in Croatia buy shares of foreign companies in order to expand and internationalise their business. Lending is carried out under the Private Sector Investment programme.
In the reporting period, HBOR generated total revenues in the amount of EUR 56.9 million, expenses in the amount of EUR 27.4 million, and profits in the amount of EUR 29.5 million.
In the first six months of this year, HBOR approved more than 1,400 loans in the amount exceeding EUR 550 million, which is 10 percent more than in the same period 2022. In terms of the number of approved loans, almost 70 percent related to investment loans, and in terms of the amount, the share of investment loans stood at 59 percent. The trend of an increase in investment loans started at the end of 2022 and has continued throughout the year. In export credit insurance activities, a volume of EUR 255 million was achieved, an increase of 4 percent compared to the first half of the last year.
In addition to the measures related to the war in Ukraine, HBOR's operations in the first half of 2023 were also marked by the implementation of the National Recovery and Resilience Plan, under which 34 investments worth EUR 61.4 million were supported. Besides new investments under the NRRP, in the framework of the financial instruments implemented by HBOR under the NRRP, a new Operational Programme for the Implementation of the Financial Instrument of the Guarantee Fund for Loans to Medium Market Capitalisation Entities and Large Business Entities was introduced in the first half of the year, whereby HBOR started issuing guarantees for large and mid-cap companies for and on behalf of the Republic of Croatia.
"The National Recovery and Resilience Plan largely reflects the news in HBOR's operations in the past period. We started the year by entering into an agreement with fifteen commercial banks on cooperation in subsidising interest from NRRP funds, and continued by stepping into the area of issuing guarantees for large and mid-cap companies. All measures related to the NRRP are aimed at encouraging new investments in the start-up, modernisation and digitalisation of operations, in the implementation of new technologies, investments in research and development as well as in environmentally friendly production processes. Therefore, it is a highly development-oriented programme, and we are proud that HBOR has been assigned the task of implementing the programme in the Republic of Croatia", said Hrvoje Čuvalo, President of the Management Board of HBOR, on the occasion of the announcement of the semi-annual results.
With the aim of stronger internationalisation of the Croatian economy, the Croatian Bank for Reconstruction and Development has, starting from this year, enabled entrepreneurs to finance the purchase of business shares of foreign companies. Taking into account that the purchase of shares of a company that already operates in one of the export markets, which has a well-established business as well as necessary permits and certificates, can be a simpler and faster way of entering the foreign market, HBOR will finance transactions by which exporters registered in Croatia buy shares of foreign companies in order to expand and internationalise their business. Lending is carried out under the Private Sector Investment programme.
In the reporting period, HBOR generated total revenues in the amount of EUR 56.9 million, expenses in the amount of EUR 27.4 million, and profits in the amount of EUR 29.5 million.