Croatia to secure €3.8bn for earthquake recovery, PM Plenkovic says

By bne IntelliNews March 23, 2021

Croatia’s government has taken steps to secure HRK28.5bn (€3.8bn) for reconstruction and revitalisation in the areas that were hit by earthquakes, Prime Minister Andrej Plenkovic said in a statement.

Zagreb was stuck by a 5.3 magnitude earthquake on March 22, with the epicentre just 7 km north of the Croatian capital, followed by a series of aftershocks. The quake caused widespread damage to around 26,000 buildings, including to the historic cathedral and many residential buildings.

At the end of 2020, a deadly earthquake hit the town of Petrinja and nearby villages, damaging many buildings and taking several lives.

Plenkovic noted that the damages caused by the quakes were estimated at HRK128bn, including HRK86bn for Zagreb and its surroundings and HRK41.6bn for Petrinja and its surroundings.

Of the total sum that the government has so far secured, almost €1.4bn is from EU funds, while €2.4bn was secured from international financial organisations.

Plenkovic also said that the government also hopes to secure more funds from the new EU Multiannual Financial Framework  which is currently being prepared.

Croatia is in talks with the European Investment Bank for an additional €1bn, with the Council of Europe Development Bank (CEB) for €900mn and with the European Bank for Reconstruction and Development (EBRD) for €300mn.

The government is also holding talks with commercial banks to secure credit lines with favourable interest rates for individuals. These loans should be used mainly for the 20% share of the costs for reconstruction that would be covered by individuals, to finance the difference between structural repairs and complete reconstruction, to finance the reconstruction of apartment buildings and also to fund the reconstruction of public buildings by the state.

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