ZAGREB (Croatia), October 24 (SeeNews) – Croatia's state-owned development bank, Hrvatska banka za obnovu i razvitak (HBOR), will lower by 50 basis points the interest rates on loans to small and medium enterprises (SMEs) that employ or plan to employ young people, Zagreb-based media reported on Monday.
HBOR will provide 200 million kuna ($29 million/26.6 million euro) for this measure and will work in cooperation with the European Investment Bank under its Jobs for Youth Initiative, news agency Hina said.
The aim of the project to provide loans at favourable terms to encourage enterprises to employ young people and hence reduce their emigration.
HBOR's interest rates for investment financing, currently standing at 2, 3 or 4 percent, can be further lowered by 50 basis points if the enterprise employs young people.
Croatia has a working age population (15+) of some 3.6 million and a labour force of about 1.8 million, according to the latest available official data.
(1 euro=7.50830 Croatian kuna)