Erste banka the first in Croatia to offer EBRD’s Reenova+ programme

Zagreb, 7 June 2016 – Erste&Steiermärkische Bank d.d. (Erste banka) was the first bank in Croatia to offer EKO Consumer Loans, which are designed to encourage citizens to invest in the energy efficiency of their homes, and which are a part of the Reenova+ programme implemented by the European Bank for Reconstruction and Development. The programme encompasses consumer loans for different purposes, aimed at reducing energy consumption by 10-50%. The EBRD is implementing energy efficiency programmes in 24 countries. Their total value exceeds EUR 4 billion, and more than 100 financial institutions are participating in their implementation.

Within the Reenova+ programme, Erste banka offered Mini EKO Consumer Loans designed for minor investments in home energy efficiency, with a maximum amount of EUR 2,000.00, and EKO Consumer Loans, which cover investments worth up to EUR 30,000.00. The Mini EKO Consumer Loans offer a repayment period of up to two years, a fixed 5.90% interest rate, and no loan processing fee. They are designed to finance the purchase of products from the Reenova+ programme listed at http://proizvodi.reenovaplus.hr/technologies, such as A+++ rated refrigerators or washing machines, high insulation windows and doors, more efficient heating systems, and solar systems. The approved funds are transferred into the seller’s account based on an estimated bill of quantities, and must be used for this purpose in entirety.

EKO Consumer Loans are designed to finance major investments, such as new windows, facade insulation, or roof insulation. Amounts range from EUR 500.00 to EUR 30,000.00, with a repayment term of between two and seven years. The interest rate is fixed throughout the entire repayment term, and ranges between 5.90% and 6.50%. No loan processing fee is charged. Unlike with the Mini EKO Consumer Loans, with the EKO Consumer Loans 60% of the loan amount has to be used for the identified purpose, and 40% may be used to purchase equipment not on the EBRD’s list: for home renovation, furniture etc.

The loans may be used to finance remodelling projects, such as the replacement of windows, or to purchase the materials for roof or facade heat insulation. They may also be used to improve a building’s heating system, for instance, by installing solar water heating systems, purchasing heating pumps, or installing energy-efficient radiators. In addition, the loans may be used to purchase environmentally friendly air-conditioning units or appliances such as refrigerators, washing machines or dishwashers of the highest A+++ energy rating. The loans may be used to improve the energy efficiency of homes, holiday houses or suites.