Zagreb/Luxembourg, 20 January 2014
EIB supports upgrade of Croatia’s touristic infrastructure
The European Investment Bank (EIB) is lending EUR 25 million to finance renovation and expansion of hotel facilities on the Adriatic coast close to Dubrovnik.
The EIB loan will be provided to the Croatian Bank for Reconstruction and Development (HBOR - Hrvatska banka za obnovu i razvitak) to onlend EIB funds to Hoteli Dubrovacka Rivijera d.d., the project promoter and the final beneficiary of the loan. The project involves modernisation and rehabilitation of two existing hotels, including the corresponding tourism accommodation and leisure facilities and reconstruction of another hotel which has remained destroyed as a result of significant war damages in the early 1990s.
EIB Vice-President Dario Scannapieco commented: “I very much welcome that the EIB financing helps to upgrade the hotel infrastructure in Croatia that is important for further development of tourism in the country in terms of quality and capacity increase. This sector is of utmost significance as it contributes with some 15% to the Croatian GDP and has a big potential to accelerate the growth of the Croatian economy”.
Anton Kovačev, President of the Managing Board of HBOR, stressed: “The Contract we signed today is important for the Croatian tourism industry that is one of the strategic branches of our economy. We are very pleased that, as a result of the excellent cooperation with the EIB, HBOR can offer funds at favourable terms and conditions for the financing of investments carried out by Croatian enterprises. I am particularly happy that we participate in this new investment that will give rise to the creation of new jobs and the strengthening of competitiveness of Croatia as a tourist destination.”
This loan is a continuation of the very productive cooperation between the EIB and HBOR, as the EIB has already granted credits to this well established EIB partner financing institution totalling some EUR 1.3 billion. These funds have supported SME projects in the areas of industry and services, including tourism, and small and medium-scale infrastructure schemes promoted by local authorities.
The EIB supports SME investments in Croatia in the framework of the Joint IFI Action Plan for Growth in Central and South Eastern Europe, which is focused on providing better access to long-term finance for Europe's SMEs to help mitigate the effects of the financial crisis. Those funds support growth by fostering economic restructuring, consolidation and diversification, as well as enhancing long-term competiveness through the increased availability of long-term credit.
The EIB is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.