The EBRD (European Bank for Reconstruction and Development) is boosting the tourism sector in Croatia and Montenegro with a senior loan of up to €100 million to Erste Bank Croatia (EBC) for on-leading to private hospitality enterprises to expand their businesses through sustainable investments in hotels and other tourism operations.
Erste Bank Croatia will be the first financial institution to receive a loan under the EBRD Inclusive Tourism Framework for the Eastern Mediterranean region.
The framework and the loan to EBC aims to: improve employment opportunities for young people and women by training young people and establishing new or substantially enhanced cooperation programs with local universities or vocational schools, and by mainstreaming equal opportunity practices and policies; and strengthen the development of backward linkages to local suppliers in the hospitality sector by coordinating relevant stakeholders. These aims are essential for developing better local value chains and for deeper integration of local farmers in Croatia and Montenegro.
“We are delighted to provide much-needed capital for the sustainable growth and further development of the tourism sector in Croatia and Montenegro. Tourism is a major driver of growtth in both countries and we expect this investment to open up new opportunities for local businesses as well as create new jobs. it demonstrates how our new framework will enable the EBRD to reach out to more clients, including smaller ones.” – said the EBRD president Suma Chakrabarti during a visit to Zagreb.
“We are very pleased to become the first partner bank under the EBRD Inclusive Tourism Framework for the Eastern Mediterranean and we look forward to continuing and further deepening the longstanding and successful cooperation between our two institutions. Support for tourism is one of four fundmantal strategic determinants and we believe that through this credit facility we will enable our clients to realise numerous successful projects in this segment, which will enable them to further strenghten and position themselves in the domestic as well as international markets.”– said Christoph Schoefboeck, the President of the Management Board of EBC.
To this date, the EBRD has invested more than €3.88 billion in Croatia in 215 projects. The last project was in December 2019, when the EBRD gave a loan of €75 million for improving local micro, small and medium-sized businesses.