Croatia becomes first EU country to introduce farm loans with up to 50% debt forgiveness

Croatia becomes first EU country to introduce farm loans with up to 50% debt forgiveness
June 6, 2026

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Croatia becomes first EU country to introduce farm loans with up to 50% debt forgiveness

  • by croatiaweek
  • June 6, 2026
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(Photo: Minister of Agriculture, Forestry and Fisheries)

New €47 million funding package will support farmers, food processors and rural communities through innovative financing and targeted support programmes.

ZAGREB, 6 June 2026 – Croatia has unveiled a new €47 million package of financial instruments aimed at strengthening agriculture, food processing and rural development, offering farmers and producers access to loans and credits with principal write-offs of up to 50%.

The agreements were signed on Friday by Deputy Prime Minister and Minister of Agriculture, Forestry and Fisheries David Vlajčić, together with the Paying Agency for Agriculture, Fisheries and Rural Development, the Croatian Bank for Reconstruction and Development (HBOR), and the Croatian Agency for SMEs, Innovation and Investments (HAMAG-BICRO).

The funding forms part of Croatia’s 2023–2027 Common Agricultural Policy Strategic Plan and is designed to improve access to capital for sectors that face greater exposure to market volatility and other disruptions.

According to the Ministry, Croatia is the first European Union member state to introduce loan and credit lines under the CAP Strategic Plan that include principal forgiveness of up to 50%.

Under the agreement with HAMAG-BICRO, €27 million has been allocated to primary agricultural production, with a focus on sensitive sectors such as livestock farming, beekeeping, fruit growing and vegetable production.

Farmers will be able to access loans ranging from €1,000 to €150,000, with up to 45% of the principal eligible for write-off.

Young farmers may qualify for write-offs of up to 50%.

A further €20 million has been secured through HBOR for investments in the food processing sector. Credits ranging from €200,000 to €3 million will be available, with up to 40% of the principal potentially written off. The measure aims to increase processing capacity and add value to domestic agricultural production.

Croatia

Alongside the financing package, the government presented three support programmes for 2026 and beyond.

The School Honey Day programme will continue promoting beekeeping and healthy nutrition among primary school pupils. Since its launch in 2018, more than 278,000 first-year pupils and 860 schools have participated. Funding of approximately €251,000 has been allocated for the 2026 programme.

A separate support scheme for the pig farming sector will provide compensation for losses linked to African swine fever control measures. The programme has a budget of €10 million through 2027 and will cover up to 40% of lost income for eligible producers.

The government also announced a €1 million programme to support housing for young families and young farmers in rural areas. The initiative, launched in 2024, has already supported 714 young families through partnerships with 107 local authorities.

In addition, proposed forestry regulation changes would significantly reduce fees associated with transferring forest land for public development and investment projects, with the aim of supporting local and national infrastructure initiatives.

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