The latest issue of the Croatian weekly Globus reports about "loans of about 260 million euros".
On Friday, Hypo spokeswoman Martina Uster told the Austrian news agency APA that this was not true.
However, we are financing only a tiny part of those investment amounts, and all the approved loans have mortgage guarantees," the spokeswoman said, describing those projects as first-rate.
Hypo Group declined to comment on media speculations that Zagorec, suspected of having committed white-collar crimes while he was Assistant Defence Minister in Croatia in the 1990s, is planning to sell the real estate in question due to the ongoing investigation against him.
The bank said that the business connections with Zagorec had started in 2003.
Zagorec has been living in Austria for several years and Croatia has asked his extradition.