ANNOUNCEMENT 22 Sep 2015In September 2015, the government of Croatia announced a change in private-sector financial support.
NUMBER OF INTERVENTIONS
EFSI Information Sheet about the project. Available at
European Commission (20 July 2015): The Investment Plan for Europe: Questions and Answers. Available at
EIB: European Fund for Strategic Investments - Questions and Answers. Available at http://www.eib.org/attachments/press/investment_plan_for_europe_qa_en.pdf
On 22 September 2015, the European Investment Bank agreed to partially cover credits related to corporate loans by the Croatian bank Hrvatska Banka za Obnovu i Razvitak (henceforth: HBOR), as part of the European Fund for Strategic Investments (henceforth: EFSI).
The programme involves a new risk-sharing instrument that will allow EIB to guarantee up to 50% of the previously implemented corporate loans. As a condition, HBOR will provide further credits to mid-caps and other eligible promoters, which will no longer be covered by the EFSI guarantee.
According to the EFSI information sheet, the EIB will provide financing worth 50 million EUR.
EFSI support does not fall under EU State Aid rules as it is meant as a tool to address "market failures or sub-optimal investment situations". However, the investment support does include favourable conditions in the form of public assumption of risk.
As described in the European Commission's Fact Sheet form 20 July 2015: "The type of risk-financing instruments will be designed so as to take uncertainty out ("first loss protection") of as such viable projects and therefore crowd-in private sector investments. Since the EFSI will take riskier tranches in investment projects, the private sector will be able to join under more favourable conditions." Furthermore, the EIB states that "The new initiative 'i.e. the EFSI' will benefit from the EIB's strong credit standing that enables funding at favourable conditions and across maturities".
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the investment support proposed here is discriminatory.
The list of affected trading partners is based on Europe's largest financial centres (according to the Global Financial Centres Index).