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RESTRUCTURING
Loan Programme for the Financial Restructuring

1. Final Borrowers

  • companies, craftsmen
  • co-operatives, institutions

Final borrowers must meet the following minimum preconditions:

  • minimum capital and reserves of 30% on the liabilities side of the balance sheet
  • mismatch in the balance sheet of a business entity, as measured by the ratio between permanently tied-up assets and sources of funding

Final borrowers may not be large entrepreneurs (pursuant to the criteria of the Small Business promotion Act), except large entrepreneurs engaged in agriculture and large entrepreneurs operating in the area of special state concern, the islands and hill and mountain areas. Loan approval to small and medium entrepreneurs shall not be considered if:

  • they paid out profit in the last two business years,
  • they paid off their borrowing in the last two business years,
  • they dispose of property (real estate) that is not used for performing their business activities,
  • they request a loan for restructuring, by which only loans of commercial banks are intended to be repaid.

2. Purpose of Loans

  • Loans are intended for the financing of investments aimed at changing the maturity of sources of funds on business entities' balance sheets.

3. Manner of Implementation

  • via commercial banks

4. Loan Amount, Disbursement Period and Repayment

Loan amount
  • HRK 80,000.00 minimum loan amount; maximum loan amount is not determined
  • loans are contracted in HRK and are indexed to foreign currency
Disbursement period
  • up to 12 months
Grace period
  • up to 2 years
Repayment period
  • up to 10 years, grace period included

 

5. Interest Rate for Final Borrowers

Interest rate for the final borrower is determined at least in the amount of basic rate increased by margin that is determined depending on the credit rating of the final borrower and offered collateral pursuant to HBOR Regulations on Determining Reference and Discount Interest Rate.

The basic rate is determined by the Croatian Competition Agency pursuant to the valid state aid regulations. The valid basic rate is disclosed on web pages of the Croatian Competition Agency (www.aztn.hr) and on HBOR web pages.

Regardless of the above mentioned, nominal interest rate for the final borrower may not be less than 6.0% p.a.

6. Loan Application Fee

0.8% one-off, charged on the committed loan amount

7. Commitment Fee

0.25% p.a., charged on the committed undisbursed loan amount, starting 30 days after the loan contract date

8. Security

HBOR accepts:

  • bills of exchange and debentures
  • pledge of property or transfer of fiduciary ownership of property supported by a property insurance policy endorsed in favour of HBOR
  • bank guarantees
  • guarantees issued by HAMAG
  • other collateral customary in the banking operations

Final borrowers negotiate collateral with commercial banks.

 

More detailed information relating to this loan programme can be obtained at:
HBOR, Strossmayerov trg 9, 10000 Zagreb
phone: 01 / 45 91 716
e-mail: gospodarstvo@hbor.hr
 

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