HBOR Financing of EU Private Sector Projects
 Loan Programme for the Financing of Private Sector Projects Co-financed from the European Structural and Investment Funds

1. Final Borrowers

  • All entities engaged in an economic activity irrespective of their legal form provided they meet the requirements of the ESI Funds.
Pursuant to the Conflict of Interest Prevention Act (Official Gazette of the Republic of Croatia Nos. 26/11, 12/12, 126/12, 57/15), restrictions are in force on lending to business entities whose ownership interests are owned by public officials and their family members. The provisions of these restrictions are deemed a constituent part of HBOR loan programmes. The full wording of the restrictions can be found at: Restrictions on Lending to State Officials.

2. Purpose of Loans

The purpose of loans is the financing of private sector projects co-financed from the European Structural and Investment Funds (hereinafter: the ESI Funds).

Loans are intended to finance the project implementation costs including:
  • Part of the project to be proposed for the ESI Funds – eligible costs pursuant to the terms and conditions of the Call for Proposals,
  • Costs that are part of the project and that cannot be proposed for the ESI Funds pursuant to the terms and conditions of the Call for Proposals (fixed assets and working capital up to 30% of the loan amount ).

3. Manner of Implementation

  • Via commercial banks
  • Direct lending

4. Loan Amount, Disbursement Period and Repayment

Loan amount   Minimum loan amount is limited to HRK 80,000.00. Maximum loan amount is not limited and it depends on HBOR’s financing possibilities, the purpose of investment, the amount of grant, the very investment project, the creditworthiness of the final borrower, and the value and quality of collateral offered.
Generally, HBOR finances up to 75% of the estimated investment value, VAT not included. In the case of direct lending, HBOR as own funds generally accepts up to 70% of the amount to be obtained by the borrower from the ESI Funds. In the case of lending via commercial banks, the percentage is determined by the commercial bank.
Disbursement period   Up to 18 months (at the justified request of the final borrower, a longer or shorter disbursement period may be approved depending on the investment schedule)
Grace period   Up to 3 years
Repayment period   Up to 15 years, grace period included (in justified cases where an investment study indicates a need for longer maturity and grace periods, the repayment period can last up to 17 years, 4-year grace period included)

5. Issuance of Advance Payment Bank Guarantee

HBOR may, at the request of the investor and to the benefit of the body responsible for the implementation of the ESI Funds, issue an advance payment bank guarantee for those investors who submit to HBOR a direct loan application and who submit to the body responsible for the implementation of the EU Funds an advance payment application (pursuant to the adequate regulations on the establishment of the institutional framework for the implementation of the EU Funds in the Republic of Croatia).

An application for the issuance of a bank guarantee with the supporting documentation is submitted to HBOR together with the loan application. HBOR shall charge appropriate fees for the above services.

6. Interest

at least 3% p.a.

Interest rate for final borrower is determined at least as the base rate increased by a margin determined depending on the assessment of final borrower’s credit rating and the offered collateral (collateralisation) in accordance with HBOR’s Ordinance on Setting the Reference and Discount Rates.

The base rate is calculated by the European Commission and published by the European Commission on its website. Interest rate is variable based on the Decision of HBOR’s Managing Board and pursuant to the criteria of HBOR’s Decision on Interest Rates and the Interest Calculation Regulations.

7. Loan Application Fee

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

8. Commitment Fee

0.25% p.a., charged on the undisbursed part of the loan, starting 30 days from the loan contract date

9. Fees for Advance Payment Guarantee

A fee for approving the issuance of and a fee for the issuance of an advance payment guarantee are calculated in accordance with the Decision on Fees for HBOR Services.

10. Security

HBOR accepts:
  • bills of exchange and debentures,
  • pledge of property or transfer of fiduciary title to property supported by property insurance policy endorsed in favour of HBOR,
  • bank guarantees,
  • guarantee issued by HAMAG-BICRO under the HAMAG-BICRO Guarantee Programmes,
  • other collateral acceptable to HBOR.
In case a loan is on-lent through a commercial bank, the final borrower negotiates collateral with the commercial bank.

11. Commercial Banks Co-operating on the Loan Programme

  1. Addiko Bank d.d., Zagreb
  2. Erste & Steiermärkische Bank d.d., Rijeka
  3. Hrvatska poštanska banka d.d., Zagreb
  4. Istarska kreditna banka Umag d.d., Umag
  5. OTP banka Hrvatska d.d., Zadar
  6. Partner banka d.d. Zagreb
  7. Privredna banka Zagreb d.d., Zagreb
  8. Raiffeisenbank Austria d.d., Zagreb
  9. Sberbank d.d., Zagreb
  10. Slatinska banka d.d., Slatina
  11. Societe Generale – Splitska banka d.d., Split
  12. Zagrebačka banka d.d., Zagreb
More detailed information can be found in the complete wording of the loan programme or at: HBOR, Strossmayerov trg 9, 10000 Zagreb Phone: +385 1 4591666 E-mail: