OCDE - Financing SMEs and Entrepreneurs 2026 - Croacia de 2026

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FINANCING SMES AND ENTREPRENEURS 2026 - CROATIA © OECD 2026

Key facts on SME financing Although individually, small and medium-sized enterprises (SMEs) are an important element of Croatian corporate sector and the overall economy, t hey collectively shape Croatia’s economic structure, not just through their numbers, but by their significant contributions across employment and economic activity. Over the past 20 years, Croatia experienced two phases of corporate financing, a period of financial deepening, that is the growth in bank financing, until the global financial cr isis, followed by a decline in bank financing after 2013. The decline of bank financing for SMEs was even more pronounced when compared to the large companies, however a modest rebound was recorded in 2024. More precisely, credit growth to enterprises in 2024 and beginning of 2025 was largely driven by lending to SMEs, which recorded an annual increase of 9.6% in 2024 and 11.8% in the first quarter of 2025. The strongest growth was recorded in investment loans to companies in real estate activities, accommodation and food services, and construction, as well as working capital loans to companies in the trade and manufacturing sec tors. To finance their operations, enterprises most commonly rely on deferred payments to suppliers and leasing, while bank loans declined in importance in 2024, with only 28% of SMEs using this source of financing, around 10 percentage points less than in 2016 and 2020. However, in 2024, full approval of the requested loan amounts was more frequent compared to 2016 and 2020. The main reason s cited for not using bank loans are the sufficiency of own funds and the availability of alternativ e external financing sources. The easing of the restrictive European central bank (ECB) monetary policy in the second half of 2024 was reflected in more favorable financing conditions for corporates. Average interest rates on newly approved loans to SMEs continued their downward trend that began in early 2024, reac hing 4.2% in March 2025.

reflected in more favorable financing conditions for corporates. Average interest rates on newly approved loans to SMEs continued their downward trend that began in early 2024, reac hing 4.2% in March 2025. This represents a decrease of 54 basis points compared to the end of last year and 14 9 basis points compared to the beginning of 2024, when rates peaked during the most recent cycle of EC B key interest rate hikes. Over the past few years regarding, among other: the COVID-19 pandemic and Russian large -scale aggression of Russia against Ukraine, SMEs have faced increase of energy costs, sup ply chain disruptions, geopolitical tensions, and monetary policy adjustments. Therefore, S MEs are forced to optimize their operations and costs, and access to finance is of even bigger importance for SMEs, especially start-ups and scale-ups. Croatia has continued its strategic use of European Union funds to develop financial instruments aimed at enhancing the competitiveness of SMEs. This initiative builds upon the successful implementation of similar programs in the previous programming period, aligning with the overarching ob jective of fostering sustainable growth and employment. One of the primary challenges facing Croatian SMEs is limited access to financing. Insufficient investment and constrained access to financial resources compel small entrepreneurs to rely on costly short-term borrowing, such as overdrafts and credit cards. Additionally, microfinancing is gene rally overlooked by traditional financial institutions due to high administrative costs and perceived risks associated with smaller or start-up enterprises. Croatia2 

FINANCING SMES AND ENTREPRENEURS 2026 - CROATIA © OECD 2026

Table 1. Scoreboard for Croatia Indicator Unit 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Debt

Table 1. Scoreboard for Croatia Indicator Unit 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Debt Outstanding business loans, SMEs EUR Billion ('000 000 000) 9.01 9.77 9.08 8.88 8.65 8.17 7.80 7.10 7.45 7.41 7.31 7.37 7.89 8.24 9.01 Outstanding business loans, total EUR Billion ('000 000 000) 13.71 14.85 12.84 12.70 12.23 11.60 11.31 11.10 10.97 10.87 11.46 11.43 13.79 14.63 15.50 Share of SME outstanding loans % of total outstanding business loans 65.7 65.8 70.7 69.9 70.7 70.4 68.9 64.0 67.9 68.1 63.9 64.5 57.3 56.3 58.1 New business lending, total EUR Billion ('000 000 000) 8.00 7.39 7.03 7.49 8.54 7.49 8.97 9.16 11.73 10.49 12.11 9.72 12.27 New business lending, SMEs EUR Billion ('000 000 000) 4.59 4.41 4.61 4.57 4.70 4.04 5.23 5.28 6.26 5.28 5.48 4.84 5.85 Share of new SME lending % of total new lending 57.5 59.6 65.6 61.1 55.1 53.9 58.3 57.7 53.3 50.3 45.3 49.8 47.7

Share of new SME lending % of total new lending 57.5 59.6 65.6 61.1 55.1 53.9 58.3 57.7 53.3 50.3 45.3 49.8 47.7 Outstanding short-term loans, SMEs EUR Billion ('000 000 000) 2.18 2.27 1.95 1.86 2.02 1.90 1.89 1.52 1.55 1.34 1.01 0.95 1.03 1.03 1.19 Outstanding long-term loans, SMEs EUR Billion ('000 000 000) 6.84 7.49 7.13 7.02 6.62 6.27 5.90 5.57 5.89 6.07 6.30 6.42 6.87 7.21 7.82 Share of short-term SME lending % of total SME lending 24.2 23.3 21.5 20.9 23.4 23.2 24.3 21.5 20.9 18.1 13.9 12.9 13.0 12.5 13.2 Government loan guarantees, SMEs EUR Million ('000 000) 59 16 23 40 39 46 120 78 104 166 60 143 Government guaranteed loans, SMEs EUR Billion ('000 000 000) 0.04 0.06 0.07 0.15 0.09 0.09 0.10 0.09 0.13 0.16 0.20 0.27 0.25 0.23 0.19

Non-performing loans, total % of all business loans 19.42 22.03 27.38 31.58 34.53 34.43 27.77 21.85 20.10 13.42 12.76 10.07 6.67 5.21 4.64 Non-performing loans, SMEs % of all SME loans 24.61 29.07 32.38 36.17 40.45 39.88 33.30 24.39 21.96 15.35 16.09 13.78 10.39 8.34 6.49 Interest rate, SMEs % 6.06 5.35 4.47 4.21 4.10 3.67 2.83 2.44 2.73 2.34 2.63 5.04 5.17 Interest rate, large firms % 6.13 5.00 5.18 4.37 3.45 3.18 2.21 1.66 1.54 1.20 1.68 4.39 4.49 Interest rate spread % points -0.07 0.35 -0.71 -0.16 0.64 0.49 0.62 0.78 1.19 1.14 0.95 0.65 0.68 Collateral, SMEs % of SMEs needing collateral to obtain bank lending 46.11 53.48 53.82 48.95 49.75 48.98 49.30 48.73 44.69 50.89 46.57 49.92 53.56 Percentage of SME loan applications SME loan applications/ total number of SMEs 24.80 19.80 36.88 25.00 24.76 25.19 28.45 23.47 22.70 26.17 23.57 35.88 22.99

Percentage of SME loan applications SME loan applications/ total number of SMEs 24.80 19.80 36.88 25.00 24.76 25.19 28.45 23.47 22.70 26.17 23.57 35.88 22.99 Rejection rate 1-(SME loans authorised/ requested) 13.91 1.58 8.24 5.00 6.29 6.45 2.69 1.55 6.69 Non-bank finance Venture and growth capital EUR Million ('000 000) 45 65 64 99 135 125 155 129 127 70 27 14 47 48 Venture and growth capital (growth rate) %, Year-on-year growth rate 44.43 -1.20 52.92 36.78 -7.05 23.39 -16.7 -1.49 -44.8 -61.3 -47.79 234.61 1.74 Leasing and hire purchases EUR Million (‘000) 5 911 6 585 8 973 10 047 6 119 7 789 10 296 12 696 14 004 Factoring and invoice discounting EUR Million (‘000) 2 886 2 933 2 581 956 1 024 649 925 747 Other indicators Payment delays, B2B Number of days 70.34 62.74 55.45 55.08 54.77 Bankruptcies, SMEs Number 5.47 4.94 4.06 3.08 2.32 3.18 3.45 2.66 Bankruptcies, SMEs (growth rate) %, Year-on-year growth rate -9.64 -17.9 -24.10 -24.8 37.03 8.66 -22.78

Source: See Table 12.. 3

FINANCING SMES AND ENTREPRENEURS 2026 - CROATIA © OECD 2026

Source: See Table 12.. 3

FINANCING SMES AND ENTREPRENEURS 2026 - CROATIA © OECD 2026

Macroeconomic and financing conditions Croatia's strong economic expansion continued in 2024, for the fourth year in a row. Economic activity grew 3.8% on annual basis, same as in 2023, primarily driven by strong domestic demand, while rebound of exports of goods was largely offset by decline in exports of services, in part due to moderating accommodation and food service. Household consumption grew by 6% on an annual basi s, boosted by rising real disposable income, which grew close to 7% yearon-year, while investment increased at 5.3% on annual basis after two years of double-digit growth rates, led dominantly by private sector activity. Private sector investments were supported by strong growth of both household dwellings a nd other business investments. As a result, construction activity continued to marke dly expand, following already high growth rate recorded in 2023. Services also increased given strong domestic demand, while, on the other hand, manufacturing activity declined for the second year in a row. However, intra-annual dynam ics indicate that this mainly reflects negative carry-over effects from second half of 2 023 and a weak start to 2024, while in the second half of 2024 manufacturing recovered to a level slightly above that in 2023. Economic growth in Croatia continued to outpace activity in most other EU member states, but GDP per capita measured in purchasing power standards remained at 78% of the EU average in 2024, which is still around ten percentage points higher than in 2019. The labor market in 2024 saw strong employment and wage growth, and falling unemployment. Administrative data suggest that employment rose by 3.3% (up from 2.5% in 2023), mainly driven by services and construction. The administrative unemployment rate dropped to 5.3% from 6.1%, while the

Administrative data suggest that employment rose by 3.3% (up from 2.5% in 2023), mainly driven by services and construction. The administrative unemployment rate dropped to 5.3% from 6.1%, while the survey-based rate fell to 5.1%. In 2024, Croatia's labor market continued to be st rongly supported by the integration of non-EU workers and further re-engagement of pensioners. These groups played a crucial role in addressing labor shortages across various sectors, including construction , trade and accommodation and food service. Inflation in Croatia fell sharply in 2024, with HICP averaging 4%, down from 8.4% in 2023, while national consumer price index declined from 8% in 2023 to 3% in 2024, driven by ECB’s restrictive monetary policy, stabilized supply chains, and lower energy prices. However, domestic demand rem ained strong due to robust economic activity, falling unemployment, and wage growth (both in the public and to smaller extent in the private sector, supported amongst other by wage-setting reforms in the public sector and a minimum gross wage increase). Nominal wages rose by about 15%, while real net wages surged from 4% to over 11% as inflation declined. Core inflation (HICP) dropped from 8.8% to 4.8%, mostly due to a sharp fall in industrial goods inflation from 7.2% to 1.3%. Services inflation eased only slightly from 10.1% to 7.6% amid persistent demand and high labor costs, especially in hospitality and accommodati on, where price competitiveness compared to other tourism-oriented countries continued to erode. Food i nflation moderated from 11.5% to 4.4%, though it rose again later in the year due to base effects and higher global prices of commodities. Energy inflation remained low at –0.3%, further helping to reduce overall inflation. SMEs in the national economy From 2019 to 2024, SMEs consistently represented around 99.7% of all enterpr ises. Within this group,

prices of commodities. Energy inflation remained low at –0.3%, further helping to reduce overall inflation. SMEs in the national economy From 2019 to 2024, SMEs consistently represented around 99.7% of all enterpr ises. Within this group, small enterprises dominate, maintaining a steady share of around 98.5%, while medium -sized firms hovered just above 1%.4 

FINANCING SMES AND ENTREPRENEURS 2026 - CROATIA © OECD 2026

Table 2. Number of NFCs by size classes Number of NFC's by size classes1 2019 2020 2021 2022 2023 2024 SME 99.73% 99.72% 99.74% 99.73% 99.71% 99,70% Small 98.57% 98.52% 98.61% 98.54% 98.41% 98,33% Medium 1.15% 1.20% 1.13% 1.19% 1.30% 1,36% Large 0.27% 0.28% 0.26% 0.27% 0.29% 0,30% Total 100.00% 100.00% 100.00% 100.00% 100.00% 100,00% Note: 1. Absolute numbers for the tables included are available upon request. The overwhelming presence of SMEs, however, isn't just based on the total count; they represent most of the economic activity as well. In terms of Gross Value Added (GVA), SME s generate between 64% and 67% of Croatia's corporate sector total GVA over the six-year period. This contribution increased from 66% in 2019 to 67% in 2023, followed by slight decrease in 2024. While small enterprises contributed just under 44% in GVA, except during the pandemic when their contribution decreased to around 41% in 2020 and

in 2019 to 67% in 2023, followed by slight decrease in 2024. While small enterprises contributed just under 44% in GVA, except during the pandemic when their contribution decreased to around 41% in 2020 and to around 42% in 2024, medium enterprises steadily increased their share from 22 % in 2019 to 23% in 2024. In 2020, the Croatian SME sector comprised nearly 140 000 enterprises, representing 99.7% of the total number of businesses and this share has remained the same in 2024. Table 3. GVA contributions by size classes GVA contributions by size classes 2019 2020 2021 2022 2023 2024 SME 66.06% 64.00% 65.24% 67.07% 67.09% 65,23% Small 43.77% 41.14% 43.01% 43.85% 43.74% 42,19% Medium 22.30% 22.86% 22.23% 23.21% 23.35% 23,04% Large 33.94% 36.00% 34.76% 32.93% 32.91% 34,77% Large 33.94% 36.00% 34.76% 32.93% 32.91% 34,77% Total 100.00% 100.00% 100.00% 100.00% 100.00% 100,00% In 2024, small and medium-sized enterprises (SMEs) made a substantial contribution to gross value added (GVA) across most sectors of the economy. The highest SME shares were recorded in other services (82.4%) and construction (80.8%), followed by accommodation and food service (67.1%) , IT, trade and manufacturing activity. These figures highlight the critical role of SMEs in drivi ng economic activity and supporting the resilience of the Croatian economy. Table 4. GVA contributions by size and industry

manufacturing activity. These figures highlight the critical role of SMEs in drivi ng economic activity and supporting the resilience of the Croatian economy. Table 4. GVA contributions by size and industry Year+2024 GVA contribution s by size and industry Manufacturing Energy and utilities Construction Trade Accommodation and food service IT Other services SME 51,24% 40,89% 80,80% 57,20% 67,14% 59,97% 82.36% Small 27,52% 19,55% 56,25% 35,55% 44,46% 39,39% 58.20% Medium 23,71% 21,34% 24,55% 21,65% 22,68% 20,58% 24.16% Large 48,76% 59,11% 19,20% 42,80% 32,86% 40,03% 17.64% Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 5

FINANCING SMES AND ENTREPRENEURS 2026 - CROATIA © OECD 2026

The employment numbers mirror GVA contributions as SMEs consistently emplo yed more than 71% of Croatia’s NFC's workforce. Within this, small enterprises accounted for the majority of jobs, employing over 52% of the workforce. Meanwhile, medium enterprises employ around 19%, maintaining a stable contribution. The difference between the companies’ size classes` contribution to economic activity against their labor force numbers suggests that smaller companies have lower labor productivity. In contrast, large enterprises accounted for approximately 35% of GVA and 28% of employment in 2024. Table 5. Employment shares by size classes Employment shares by size classes 2019 2020 2021 2022 2023 2024

enterprises accounted for approximately 35% of GVA and 28% of employment in 2024. Table 5. Employment shares by size classes Employment shares by size classes 2019 2020 2021 2022 2023 2024 SME 74.53% 72.41% 72.67% 73.03% 72.19% 72,09% Small 54.63% 52.44% 53.59% 53.56% 53.22% 52,94% Medium 19.89% 19.98% 19.08% 19.46% 18.97% 19,14% Large 25.47% 27.59% 27.33% 26.97% 27.81% 27,91% Total 100.00% 100.00% 100.00% 100.00% 100.00% 100,00% When it comes to sales revenue, SMEs accounted for 55% in total, with small businesses generating 34% and medium-sized 22%. However, it is worth noting that these numbers follow a declining trend until 2023, which slightly recovered in 2024. Compared with 2019, these numbers are around 5 pp; 4 pp. a nd 0 pp. lower, respectively. Large enterprises, on the other hand, recorded an increase in sales share, from around 40% in 2019 to 46% in 2023, followed by a minor decrease in 2024 to 45%. Table 6. Sales share by size classes Sales share by size classes 2019 2020 2021 2022 2023 2024 SME 59.89% 57.52% 57.62% 54.27% 53.82% 55,29% Small 38.47% 35.57% 36.10% 33.60% 32.98% 33,71%

SME 59.89% 57.52% 57.62% 54.27% 53.82% 55,29% Small 38.47% 35.57% 36.10% 33.60% 32.98% 33,71% Medium 21.42% 21.96% 21.53% 20.66% 20.84% 21,58% Large 40.11% 42.48% 42.38% 45.73% 46.18% 44,71% Total 100.00% 100.00% 100.00% 100.00% 100.00% 100,00% In terms of exports, SMEs accounted for 49% of the total, with small businesses contributing 25%, similar to medium-sized. Large enterprises alone accounted for 51%, showing a stronger i nternational presence, but decreased in 2024 from 54% in 2023. Table 7. Exports share by size classes Exports share by size classes 2019 2020 2021 2022 2023 2024 SME 52.43% 52.50% 50.50% 44.66% 45.74% 49,06% Small 28.08% 26.86% 26.63% 22.96% 22.91% 24,80% Medium 24.35% 25.64% 23.87% 21.70% 22.83% 24,26% Large 47.57% 47.50% 49.50% 55.34% 54.26% 50,94% Total 100.00% 100.00% 100.00% 100.00% 100.00% 100,00% Regarding investment activity, SMEs traditionally record lower shares compared with their market share. However, after 2020 this share is increasing and in 2024 SMEs made up 46% of total investments (small :

Regarding investment activity, SMEs traditionally record lower shares compared with their market share. However, after 2020 this share is increasing and in 2024 SMEs made up 46% of total investments (small : 25%, medium: 21%), while large enterprises accounted for 54%. Again, this points to the greater financial strength and capital intensity of large firms.6 

FINANCING SMES AND ENTREPRENEURS 2026 - CROATIA © OECD 2026

Table 8. Investments share by size classes Investments share by size classes 2019 2020 2021 2022 2023 2024 SME 43.39% 41.20% 41.41% 43.15% 46.28% 45,63% Small 23.02% 23.68% 21.83% 24.51% 25.42% 25,09% Medium 20.38% 17.51% 19.59% 18.63% 20.87% 20,53% Large 56.61% 58.80% 58.59% 56.85% 53.72% 54,37% Total 100.00% 100.00% 100.00% 100.00% 100.00% 100,00% Finally, regarding net profit, SMEs represented a solid 66% share in 2023 (42% from small enterprises and 24% from medium ones); however, in 2024 their share in net profit decreased. Large en terprises contributed to 34% in 2023 and increased their share to 42% in 2024 as a result of significant increase in absolute amount of net profit by 42% while SME's net profit remained stable. Despite their si ze, it shows that SMEs still play a major role in overall corporate profits; however, considering their share in used inputs (especially labor) points to their lower net margins. Table 9. Net profit shares by size classes Net profit shares by size classes

that SMEs still play a major role in overall corporate profits; however, considering their share in used inputs (especially labor) points to their lower net margins. Table 9. Net profit shares by size classes Net profit shares by size classes 2019 2020 2021 2022 2023 2024 SME 52,46% 60,09% 61,80% 66,87% 65,82% 57,55% Small 30,76% 37,28% 37,90% 37,68% 41,56% 36,53% Medium 21,70% 22,81% 23,90% 29,19% 24,26% 21,02% Large 47,54% 39,91% 38,20% 33,13% 34,18% 42,45% Total 100.00% 100.00% 100.00% 100.00% 100.00% 100,00% In 2024, SMEs in Croatia grew in both value added and employment, with growth rates of 12.0% and 3.7% respectively. However, as value-added growth is not adjusted for inflation, in the high-inflation environment of 2023, growth in real terms is negative at -5.9%. Compared to that in 2024, SMEs in Croatia grew in both employment and inflation-adjusted value added, with growth rates of 3.7% and 1.1% respectively. All size classes experienced growth in both indicators, with the highest growth seen in micro-enterprises, with 7.3% and 2% respectively. Regarding 2025, Croatian SMEs are forecasted to grow further: employment growth will continu e to be substantial, at 2.6%. Moreover, SME real value added is expected to grow by 3.4%. Croatia has 59 SMEs per 1000 inhabitants. That is slightly above the EU27 average of 58 SMEs per 1000 inhabitants, and the

substantial, at 2.6%. Moreover, SME real value added is expected to grow by 3.4%. Croatia has 59 SMEs per 1000 inhabitants. That is slightly above the EU27 average of 58 SMEs per 1000 inhabitants, and the Croatian SMEs value added created per person employed is close to 33 000 EUR (as of 2024 data) while EU average1 is nearly 58 000 EUR. Construction, one of the biggest industrial activities in Croatia, saw signific ant growth in 2024; its SME employment grew by 8%, and the increase in inflation-adjusted value added reached 9. 6%. Another key activity for the national economy, accommodation and food service, thrived as well, wi th growth rates exceeding 6,8% and 2.3%, respectively. Regarding 2025, all 14 industrial activities will grow in both indicators . The most prominent growth is expected in the digital and cultural and creative industries; digital wil l grow by 4.6% in both SME employment and SME inflation-adjusted value added, and the respective growth rate s for cultural and creative industries exceed 3.8%. 7

FINANCING SMES AND ENTREPRENEURS 2026 - CROATIA © OECD 2026

Table 10. SME development 2023-2024 Number of enterprises +4.1% Number of persons employed +3.7% Real value added +1.1% Table 11. SMEs by number of employees 2024 Enterprises Persons employed Value added Number Share Number Share EUR billion Share Micro (0-9 employees) 209 708 92.6% 402 726 31.7% 8.6 22.1% Small (10-49 employees) 14 151 6.2% 266 753 21.0% 8.3 21.3% Medium (50-249 employees)

Small (10-49 employees) 14 151 6.2% 266 753 21.0% 8.3 21.3% Medium (50-249 employees) 2 194 1.0% 218 932 17.2% 7.4 19.0% Total SMEs 226 053 99.8% 888 411 70.0% 24.3 62.4% SME lending The corporate financing pattern in Croatia went through two characteristic periods over the last twenty years. The period between 2002 and the recession that followed the global financial crisis was marked by financial deepening, that is, the growth in bank financing, paired with the simulta neous reduction in the share of capital in corporate balance sheets. Opposite developments marked the period after 2013 , when the share of liabilities towards banks in corporate liabilities started reducing for two reasons: a) the growth in the market share of companies that are not bank clients and b) the fall in the share of bank l oans in the liabilities of companies that were banks’ existing clients. The share of loans to SMEs in total corporate loans has been declining since 2013, mirroring their decline in corporate market share 2, dropping to 56% in 2023, which is 14 percentage points lower than in 2013. The modest rebound was recorded at the end of 2024 when this share increased to 58%. More precisely, credit growth to enterprises was relatively strong in 2024 and the beginning of 2025. Bank loans to NFCs in 2024 increased by 6.4% 3, the same as in 2023, with most of the growth occurring in the second half of the year. In the first quarter of 2025, this growth accelerated to 12.2%. This growth was largely driven by lending to SMEs, which recorded an annual increase of 9.6% in 2024 an d 11.8% in the first quarter of 2025. The strongest growth was recorded in investment loans to companies in real estate

largely driven by lending to SMEs, which recorded an annual increase of 9.6% in 2024 an d 11.8% in the first quarter of 2025. The strongest growth was recorded in investment loans to companies in real estate activities, accommodation and food services, and construction, as well as working c apital loans to companies in the trade and manufacturing sectors.8 

FINANCING SMES AND ENTREPRENEURS 2026 - CROATIA © OECD 2026

Figure 1. Outstanding SME and total business loans Annual EUR Million

To examine the specific challenges faced by SMEs, their operating conditi ons, and especially the challenges they face regarding financing, for the past decade the Croatian Nationa l Bank has been conducting a dedicated Survey on the access to finance of enterprises (SAFE). According to the fourth round of the survey conducted in the second half of 2024, regulatory requirements remain among the most significant obstacles to business operations. However, their perceived importance has declined compared to previous rounds of the survey, while an increasing number of enterprises report challenges related to production or labor costs and the availability of skilled professionals or experienced managers. Figure 2. New business lending EUR million 9

FINANCING SMES AND ENTREPRENEURS 2026 - CROATIA © OECD 2026

To finance their operations, enterprises most commonly rely on deferred payments to suppliers and leasing, while bank loans declined in importance in 2024, with only 28% of SMEs using this source of financing, around 10 percentage points less than in 2016 and 2020. The main reasons cited for not using bank loans are the sufficiency of one's own funds and the availability of alternati ve external financing sources. Compared to previous rounds of the survey, 2024 saw a decline in the number of enterprises that found loan collateral requirements unacceptable, as well as those whose loan appli cations were formally or informally rejected. While surveyed enterprises perceived financing conditions as less favorable, primarily reflecting higher interest rates and other financing costs, this did not translate into reduced loan

found loan collateral requirements unacceptable, as well as those whose loan appli cations were formally or informally rejected. While surveyed enterprises perceived financing conditions as less favorable, primarily reflecting higher interest rates and other financing costs, this did not translate into reduced loan availability. A larger share of enterprises secured the full amounts requested t han in previous survey waves, suggesting that the reported deterioration mainly related to the cost and other terms of financing, rather than to credit availability. Specifically, the share of enterprises that rec eived the full requested amount increased, while fewer enterprises received less than the full amount. Looking ahead, enterprises emphasize the importance of improving the business environment, tax relief, an d more flexible labor legislation for the future of their operations. Credit conditions The easing of the restrictive ECB's monetary policy in the second half of 2024 was reflected in more favorable financing conditions for corporates. Average interest rates on newly appr oved loans to SMEs continued their downward trend that began in early 2024, reaching 4.2% in March 2025. This represents a decrease of 54 basis points compared to the end of last year and 149 basis points compared to the beginning of 2024, when rates peaked during the most recent cycle of ECB key interest rate hikes. The decline in interest rates on corporate loans reflects the dynamics of the Euribo r4, given that around half of newly approved corporate loans are linked to the Euribor as a reference rate. To a somewhat lesser extent, it also reflects a decrease in the average fixed interest rate, which applies to roughly the other half of new corporate loans. The drop in market interest rates is also evident in the gradual and mode rate decline in the average interest rate on existing loans. Figure 3. Interest rates and interest rate spread Annual, as a percentage10 

FINANCING SMES AND ENTREPRENEURS 2026 - CROATIA © OECD 2026

According to the Bank Lending Survey (BLS), in the first quarter of 2025, banks kept lending standards for

Annual, as a percentage10 

FINANCING SMES AND ENTREPRENEURS 2026 - CROATIA © OECD 2026

According to the Bank Lending Survey (BLS), in the first quarter of 2025, banks kept lending standards for corporate loans to SMEs unchanged, following a period of easing during the previous year. Reduced need for investment financing led to a slight decline in corporate loan demand, following grow th in the second half of 2024. Alternative sources of SME financing Leasing Leasing has been regulated as an activity in Croatia since 2006 with the entry into force of the Leasing Act. Although the leasing business in Croatia was present even before the entry into force of the Leasing Act, a total of 26 companies has aligned their operations with the provisions of the Leasing Act and become subject to Hanfa supervision. From the very beginning of their operations, leas ing companies have managed to position themselves as significant institutions within the financia l system of Croatia with their products (financial and operational leasing). The assets of 15 active leasing companies as of 31.12.2024 amounted to 4.1 billion EUR and are recording continuous growth (except for the period of the COVID pandemic when the volumes of fi nancing through leasing fell significantly due to the closure of the market and problems with supply chains). The value of newly concluded leasing contracts for SMEs (total financial a nd operational leasing) in 2024 amounted to 1.4 billion EUR, which represents almost 70% of the total value of newly concluded leasing contracts. From the above, leasing in Croatia represents an important alternative source of financing, which mainly finances SMEs. The value of newly concluded leasing contracts for SMEs continued to grow until 2019 . The COVID crisis brought a significant drop in the value of newly concluded contracts, considering t hat in 2020 the value of newly concluded contracts for SMEs was 39% lower compared to 2019. After the COV ID crisis, which briefly stopped growth, the value of newly concluded contracts for SMEs continued to grow and