IBRD loan reduces costs of government services to benefit citizens and entrepreneurs

State Secretary Fadila Bahović presented to the Parliamant the final proposal of the Act on the Ratification of the Loan Agreement between the Republic of Croatia and the International Bank for Reconstruction and Development for the Integrated Land Administration and Justice Services project

The Loan Agreement was signed on 25 June 2024, and the constitutional basis for the adoption of this Act is contained in Article 140(1) of the Constitution of the Republic of Croatia, according to which the Croatian Parliament confirms international agreements that financially bind the Republic of Croatia.

"It is a EUR 110 million loan, with the repayment maturity of 11 years, a grace period of 5 years and an interest rate equal to the six-month EURIBOR rate plus a variable spread", explained State Secretary Bahović, pointing out that the loan funds will be jointly used by the Ministry of Justice, Public Administration and Digital Transformation and the State Geodetic Administration.

"The funds will be used to further improve digital services and the functional integration of land administration and judicial bodies", stated State Secretary Bahović.

In this context, development of the service of virtual assistants for land registers and the purchase of IT equipment for land registry departments were highlighted among the project activities to be financed by the loan funds.

The loan will enable the State Geodetic Administration to conduct an aerial LIDAR survey of the Republic of Croatia and carry out activities to expand the infrastructure cadastre to the whole of Croatia.

"It will also enable the introduction of new functionalities in the Real Property Registration and Cadastre Joint Information System (JIS) and the design and construction of new court and cadastre buildings in Rijeka, Velika Gorica, Novska and Bjelovar", added State Secretary Bahović.

These project activities represent the continuation of work on improving cadastre and land registry data by implementing the cadastral survey procedure and the renewal of land registers, all in order to achieve the results of the reform measure provided for in the National Recovery and Resilience Plan 2021 - 2026, i.e. to ensure that 60% of all cadastral plots are in the land database by 2026 and 100% of all cadastral plots in a further period.

“This loan will enable the continuation of activities to further support the modernisation of the Croatian land administration and management system, all with the aim of further improving efficiency and transparency, and reducing the costs of government services for the benefit of citizens, entrepreneurs and state institutions”, State Secretary Bahović concluded.

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