Croatia to set up first venture capital fund encouraging innovation

Croatia will set up first venture capital fund after signing a loan contract for an innovation and enterprise capital project with World Bank on Wednesday.

The amount of 150 million kuna (21.9 million U.S. dollars) loan would be used to found a venture capital fund which aimed at financing for small and medium sized enterprises and strengthening competitiveness of the private sector, according to Croatian Entrepreneurship and Trade Minister Gordan Maras.

The fund is expected to make about 20 investments and the maximum investment is 10 percent of the fund's value, he added.

Carlos Pinerua, head of the World Bank's Croatia office, who signed the agreement with Croatian Finance Minister Boris Lalovac, said encouraging enterprises capable of creating new products was the key to step up economic growth in Croatia.

The loan is ten years with four years' grace, according to the agreement.