Loan (The Environmental Protection Programme of the HBOR)

Updated: 07.02.2019

Author: Stefan Ćetković

This Rulebook specifies the conditions, which have to be met by the beneficiaries of the financial means, and sets out the manner of their allocation and the criteria for granting.Renewable energy loans are issued by the Croatian Bank for Reconstruction and Development (HBOR).

In accordance with the provisions of the Environmental Protection Act (Art. 1, 18 and 34 Environmental Protection Act), the State is bound to support and finance projects aiming at environmental protection. 

The HBOR is obliged to support projects aiming at environmental protection (Art. 10 par. 2 no. 5 HBOR Act). On this basis, the HBOR has launched the Loan Programme for Environmental Protection, Energy Efficiency and Renewable Energy, which financially supports through loans the realisation of investment projects in several areas including renewable energy. The loans can be granted for fixed assets (initial funding, land plots, buildings, equipment and devices) and for permanent working capital up to 30% of the total loan amount (Point 1 HBOR Programme for Environmental Protection).

Eligible technologies

In general, all technologies are eligible (Point 1 HBOR Programme for Environmental Protection).

Wind energy


Solar energy


Geothermal energy









According to the HBOR Programme for Environmental Protection, the terms and conditions of loan are as follows: 
  • The minimum loan amounts to HRK 100,000 (approx. € 13,200).
  • The amount of loan is not subject to a maximum and depends on: 1. the HBOR's financing capability, 2. the specific investment programme, 3. the creditworthiness of the end borrower(s), and 4. the value and quality of the security offered.
  • Before applying for a loan exceeding HRK 37 million (approx. € 4.9 million), borrowers / commercial banks are obliged to obtain a written consent from the HBOR to submit their loan applications. However, the approval of the application does not mean that a loan will be granted.
  • The HBOR will cover up to 75% of the estimated investment value without VAT.
  • The interest rate (currently 4%) is variable and mainly subject to the decision of the HBOR. The rate may also be agreed to be set at the three-month EURIBOR + 2% per year. 
  • If the investment meets the eligibility criteria of the Environmental Fund and is approved by it, the loan interest rate can be reduced by a further 2%. (Point 4 and 5 HBOR Programme for Environmental Protection)


As long as the statutory requirements are met, the borrowers may be local and regional governments (municipalities, cities, counties and the city of Zagreb) as well as utility companies, trade companies, craftsmen and other legal entities or commercial banks that have an agreement on the implementation of the programme with the HBOR (Point 2 HBOR Programme for Environmental Protection).


Process flow

According to the HBOR Programme for Environmental Protection, borrowers must submit their loan requests to a commercial bank along with the following documents:

  • an investment plan for expenses of more than HRK 700,000 (approx. € 92,000) or a business plan for lower investments,
  • a costs projection,
  • the technical documentation including the necessary permits,
  • a bank statement showing the credits on the borrowers’ bank account,
  • data on sureties/guarantees, 
  • a questionnaire completed by the HBOR regarding the Environmental Protection Programme, 
  • a statement on the amount of state aid already used.

Further documentation may be required depending on the borrowing party (municipality, company etc.) (Point 3 and 10 HBOR Programme for Environmental Protection).

Competent authority

The HBOR and the commercial banks responsible for the implementation of this scheme (Point 3 and 7 HBOR Programme for Environmental Protection).

Distribution of costs


The costs are borne by the HBOR which is fully funded by the state (Art. 5 HBOR Act).


Further information