CEB and HBOR strengthen partnership with landmark €250 million loan agreement

PARIS – The Council of Europe Development Bank (CEB) and the Croatian Bank for Reconstruction and Development (HBOR) have signed a new €250 million loan agreement to support strategic investments in micro, small, and medium-sized enterprises (MSMEs), municipal infrastructure, social and affordable housing in Croatia.

This loan – the tenth over two decades – marks a significant milestone in the long-standing cooperation between CEB and HBOR, one of the Bank’s more prominent and trusted partners in Croatia and the wider region, and brings the total volume of CEB loans to HBOR to €1 billion. Taken together, these funds have supported more than €2 billion in social inclusion investments across the country.

Channelled through HBOR, this new CEB loan will part-finance local investments – from schools and healthcare facilities to utility networks and housing – helping Croatian municipalities bridge infrastructure gaps and improve public services.

Another core objective is to strengthen the competitiveness of MSMEs as key drivers of employment and economic resilience in Croatia. By facilitating access to finance for productive investment and working capital, the loan will help MSMEs navigate the compounding effects of recent global and domestic crises and maintain their crucial role in sustaining employment.

The loan also responds to Croatia’s pressing housing needs. The country continues to face structural shortages in social and affordable housing, particularly in urban centres and among vulnerable groups, further exacerbated by rapidly rising housing costs. The CEB funds will help municipalities invest in housing and support the development of a more dynamic and inclusive housing system.

“This new loan builds on two decades of strong cooperation with HBOR,” said CEB Governor Carlo Monticelli. “It speaks not only to our institutions’ shared operational goals but to a common view to support inclusive communities and a resilient society.”

“Our cooperation with the CEB is of strategic importance for HBOR – it is grounded in a shared understanding of the role that development banks play in strengthening social cohesion and delivering long-term benefits for citizens. We particularly value this partnership not only for its financial support, but also for the expertise and focus it brings to sustainable development,”- Hrvoje Čuvalo, President of the Management Board of HBOR.

Building on this momentum, CEB and HBOR are engaged in discussions on future initiatives that aim to further reinforce social inclusion and advance Croatia’s strategic priorities in public health and housing.