HBOR. You hear the name on the news, in conversations about business loans, through stories about state incentives. But what is HBOR really? Is it a bank like any other? And who runs it — politicians or experts?
First: what does HBOR stand for?
Hrvatska banka za obnovu i razvitak — the Croatian Bank for Reconstruction and Development. Founded in 1992, during wartime, originally to finance the country’s reconstruction. Today it is the development and export bank of the Republic of Croatia — its main task is stimulating the development of the Croatian economy through lending, export insurance, guarantees, and advisory services.
In short: HBOR does not exist to make money (although it operates profitably). HBOR exists to help — entrepreneurs, exporters, local government units, green transition projects. It’s designed as the state’s tool for economic policy.
But is HBOR really a bank?
This is the most interesting question. And the answer is classically Croatian: yes and no.
Why it is a bank: It gives loans, issues guarantees, has a Management Board and Supervisory Board, and holds an A credit rating from S&P Global Ratings.
Why it is NOT a bank (in the classic sense): It does not take deposits from citizens, is NOT regulated by the Croatian National Bank (HNB) like regular banks, was founded by a special law (not the Banking Act), is not entered in the court register, and cannot go bankrupt — the law explicitly states no bankruptcy or liquidation proceedings can be conducted against it.
Officially, HBOR is defined as a “special financial institution” and a “development and export bank.” A bank by function, but not by legal status.
Who runs HBOR — politicians or experts?
Here we get a layered answer. The Management Board — experts. Three members: Hrvoje Čuvalo (President since 2022, a long-term HBOR employee promoted from within, previously Head of Risk Placement), Josip Pavković, and Alan Herjavec. The Supervisory Board — pure politics. Ten members: six government ministers, three MPs, and the head of the Croatian Chamber of Commerce. The Finance Minister chairs it. They appoint and dismiss the Management Board.
HBOR is run by experts but supervised by politicians. And that makes sense — since HBOR is 100% state-owned and uses public money (7 billion HRK capital), political oversight is inevitable. The problem arises when that line blurs.
Why should you care?
Because HBOR finances projects that affect every citizen: loans for SMEs, infrastructure (roads, schools, hospitals), export insurance, green transition, and investment funds (HBOR plans 100M+ EUR in funds by 2029). HBOR manages over 5.5 billion EUR through its 2025-2029 strategy with an A credit rating.
Conclusion
If it looks like a bank, swims like a bank, and lends like a bank — it’s probably a bank. But legally, HBOR is a “special financial institution” run mainly by experts, controlled exclusively by politicians. The real question: how independent are its credit decisions from daily political needs?