Under the new programme, loans will be approved in HRK with an up to 3 year grace period and an up to 15 year repayment period. Interest rate stands at 4 percent p.a., and, in accordance with HBOR’s decision to temporarily lower its interest rates for new investment projects in the period 1 January 2012 – 31 December 2012, it stands at 3 percent p.a. for new investment in tourism, agriculture, industry, environmental protection, energy efficiency and renewable energy resources. The programme is intended to be used by units of local and regional government, companies majority-owned by units of local and regional government or the state, borrowers that meet the requirements of the programme and commercial banks that will enter into co-operation contracts on the implementation of the programme. The purpose of the loans is to finance eligible expenditures pursuant to the requirements contained in the Invitation to Submit Project Proposals and to finance those expenditures that are part of the project but cannot be nominated for the financing under the IPA programme pursuant to the Invitation to Submit Project Proposals.

Under the new loan programme for IPA candidate projects, the amount of up to 75 percent of the preliminary investment value without VAT shall be covered or, in the case of units of local and regional government, up to 100 percent of preliminary investment value with VAT. Maximum loan amount is not limited, and minimum loan amount equals HRK 80,000.00. The financing will be carried out through commercial banks or directly in the case of units of local and regional government or companies majority-owned by units of local and regional government or the Republic of Croatia.

By the new loan programme, Hrvatska banka za obnovu i razvitak has complemented its current activities aimed at providing support for the use of pre-accession funds.