Loan schemes of the Croatian Bank for Reconstruction and Development (HBOR)
Founded in 1992, the Croatian Bank for Reconstruction and Development is a development and export bank entirely owned by the Republic of Croatia whose main goal is financing of reconstruction and development of the Croatian economy.
Some of the main services offered by HBOR are liquidity loans related to COVID- 19 measures and loan programmes for entrepreneurs called Youth, Female and Start-up Entrepreneurship programme and Private Sector Investments programme, to name a few.
Measures against COVID-19 – COVID-19 working capital loans
The COVID-19 measure is implemented as a temporary measure with the use period extended until 30 June 2021 or until the available subsidies are used. This measure includes two main programmes:
1. COVID-19 working capital measure
This programme is suitable for business entities in the private and public sector which, as per the calculations of the Croatian Financial Agency (FINA), must have a certain COVID score, i.e. must prove the impact the COVID-19 pandemic has had on their business.
The programme funds can be used for financing current operating costs while the lending takes place either in cooperation with commercial banks according to the risk-sharing model or directly from HBOR. Depending on the type of lending, the interest rate ranges from fixed 0.00% per year for the first three years of repayment, while the interest rate for the fourth and fifth year of loan repayment amounts to 1.5%.
Loan use term is up to 6 months while the repayment term is up to 5 years including the grace period of up to 1 year.
For more information about this programme visit the following link.
2. HBOR working capital loans through framework loans to banks
This programme is suitable for micro, small and medium-sized entrepreneurs in accordance with the Business Development Promotion Act, including natural persons performing a registered activity (crafts businesses, sole traders, family farms).
The borrowers also have to prove, on the basis of the Methodology for the Calculation of COVID Score of the Financial Agency (FINA), the impact that the COVID-19 pandemic has had on their business. All COVID scores are acceptable except the negative one. The funds from this programme can be used for financing operating costs. Lending is carried out through commercial banks without any limitation to the lowest loan amount. The interest rate is defined as per the decision of a commercial bank decreased by 0.75 percentage points.
A commercial bank shall define the manner and term of loan use and repayment ranging from minimum of 1 year including the grace period to maximum of 6 years (from the date of the loan contract until the final loan repayment date).
For more information about this programme visit the following link.
Other loans
HBOR loans – Youth, Female and Start-up Entrepreneurship programme
The Youth, Female and Start-up Entrepreneurship programme is suitable for entrepreneurs, i.e. companies, sole traders, crafts businesses, family farms, cooperatives and institutions, provided that the applicants fall into the category of young, female or beginner entrepreneurs.
The purpose of the loan is investing in fixed assets (tangible and intangible assets) for the purpose of business start-up, business modernisation, introduction of new technologies etc. The lending is carried out either in cooperation with commercial banks, in which case the loan beneficiary submits an application with appurtenant documentation directly to a commercial bank or with HBOR, in which case the loan beneficiary submits an application and appurtenant documentation directly to HBOR.
The minimum and maximum loan amount is HRK 200,000 and HRK 2,000,000 respectively. Financing through loan can amount to 85% of the estimated investment value without VAT. The annual interest rate is 2 % and it remains fixed during the entire loan repayment term.
The loan use period is generally up to 12 months, but it is also possible have a longer use period granted. Loan repayment period is up to 12 years including a 3-year grace period.
For more information about this programme visit the following link.
2. HBOR loans – private sector investments
Private Sector Investments programme is suitable for companies, sole traders, crafts businesses, family farms, cooperatives and institutions.
The purpose of the loan is investing in fixed assets (tangible and intangible assets) for the purpose of business modernisation, introduction of new technologies, increasing capacities and similar. Financing through loans is carried out either in cooperation with commercial banks, in which case the loan beneficiary submits an application and appurtenant documentation directly to a commercial bank or with HBOR, in which case the loan beneficiary submits an application and appurtenant documentation directly to HBOR.
The minimum loan amount is HRK 200,000 while the maximum loan amount is not defined and the financing through loan can be up to 75% of the estimated investment value without the VAT. Annual interest rate is generally 3 % and it remains fixed during the entire loan repayment term, but it can vary as per the terms of HBOR listed in the description of the loan programme.
For more information about this programme visit the following link.
