New HBOR Act Adopted: Strengthening Capacities for New Investments

The new Hrvatska banka za obnovu i razvitak Act was published in the Official Gazette of the Republic of Croatia No. 55/2026 and will enter into force on 4 June 2026. The Act strengthens the institutional and financial framework of HBOR's operations, all in line with current development and regulatory requirements.

One of the key novelties relates to a significant increase in HBOR's capital, which is increased by EUR 980.7 million, with the total capital now reaching EUR 1.91 billion. Of the stated amount, EUR 410 million was provided from the NRRP funds, while the remaining amount of EUR 571 million relates to the transfer of retained earnings and reserves of HBOR.

In this way, HBOR’s financial potential for the implementation of development projects is further strengthened, especially in the areas of green and digital transition, as well as investments in defence and security.

The new Act also brings a number of institutional and operational improvements, including:

• alignment with the current legislative framework, in particular the Act on Legal Entities Owned by the Republic of Croatia and the Credit Institutions Act
• diversification of HBOR's activities, including factoring and international development cooperation, and further emphasizing activities in the areas of equity investments, business internationalisation, green transition and digitalisation, as well as investments in defence and security
• introduction of new committees of the Supervisory Board and increase in the number of Supervisory Board members
• improvement of the reporting system with the aim of increasing transparency.

By adoption of the new Act, prerequisites are created for further enhancement of HBOR’s operations, development of new financial instruments, and stronger support for projects that contribute to sustainable growth, competitiveness and resilience of the Croatian economy.

In the coming period, new By-Laws of HBOR will be adopted, and internal documents will also be harmonised and their new versions adopted. This will further elaborate, and ensure the full implementation of, the new Act in practice.