This covers 4.6 million euros which have remained unused from the EU financed Credit Guarantee Schemes in support to small farmers and small enterprises in various war-affected areas since 1997.
At the ceremony of signing the agreement on the transfer in Zagreb, HAMAG management board chairman Zoran Barisic said the EU started with this programme in 1997 to reduce the banks' risks when lending to people with no credit record in formerly war-affected areas.
Loans under this scheme were used by 1,700 families, namely about 250 small companies, which led to the creation of 500 new jobs in Lika-Senj, Sisak-Moslavina, Karlovac, Pozega-Slavonia, Brod-Posavina, Vukovar-Srijem, Sibenik-Knin, Zadar and Osijek-Baranja counties.
The head of the European Commission Delegation to Croatia, Jacques Wunenburger, said that all loans were regularly repaid, which was why no sums were drawn from the credit guarantee funds until the completion of the project in December 2004.
Therefore, it was agreed with the Croatian government and the economy ministry to adopt this exit strategy and transfer the said 4.6 million euros from the UNDP/UNOPS to HAMAG.