"The proposed transaction will enhance competition in the retail sector in Croatia by supporting a medium sized local retailer seeking to develop hypermarkets in Croatia, expanding also in the secondary cities and thus supporting the regional development of the country as opposed to only capital cities where a majority of retailers based their operations," the EBRD said in a statement on its web site.
The total value of the project is EUR 47 million.
The project is designed to strengthen backward linkages with local suppliers.
"The backward linkages are of particular importance given the high quality criteria (including health & safety standards, image and quality/price levels) imposed by Spar Croatia d.o.o. on suppliers, supporting thus competitiveness of the Croatian producers during the important period of the Croatia's preparation for the EU accession," reads the statement.
The proposal for granting the loan will be on the agenda of the EBRD managing board on 30 June.