HBOR Financing of EU Rural Development, Fisheries and Wine Envelope Projects
 The Loan Programme for the financing of projects nominated to be co-financed from the funds of the Common Agricultural and Fisheries Policy, i.e. the European Agricultural Fund for Rural Development, the European Agricultural Guarantee Fund and the European Maritime and Fisheries Fund

The entire wording of the loan programme can be downloaded here.

1. Final Borrowers

  • Applicants who meet the requirements of the tendering process, through which they submit applications
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 the Loan Programme is the financing of investments proposed on the basis of the tendering process from any of the mentioned EU agricultural or fisheries funds.

Loans are intended for the financing of 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 – ineligible costs (fixed assets and working capital up to 30% of the loan amount*).
*Eligible costs that, according to their nature, belong to the working capital are not included in the calculation.

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 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. HBOR can, in certain cases, consider a possibility of financing the estimated investment value with VAT. In the case of direct lending, HBOR as own funds generally accepts up to 70% of the amounts to be obtained by the (final) 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 (for projects in the winegrowing sector, longer periods may be approved)  
Grace period   Up to 3 years (up to 5 years for the planting and/or restructuring of perennial crops)  
Repayment period   Up to 15 years, grace period included  

5. Issuance of Advance Payment Bank Guarantee

HBOR may, at the request of the investor and to the benefit of the guarantee beneficiary (the Paying Agency for Agriculture, Fisheries and Rural Development), issue an advance payment bank guarantee for those investors who submit to HBOR a direct loan application and who submit to the Paying Agency for Agriculture, Fisheries and Rural Development an advance payment application.

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,
  • 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 (RS)
  2. Croatia banka d.d., Zagreb
  3. Erste & Steiermärkische Bank d.d., Rijeka (RS)
  4. Hrvatska poštanska banka d.d., Zagreb (RS)
  5. Istarska kreditna banka Umag d.d., Umag
  6. OTP Banka Hrvatska d.d., Zadar (RS)
  7. Privredna banka Zagreb d.d., Zabreb
  8. Raiffeisenbank Austria d.d., Zagreb (RS)
  9. Slatinska banka d.d., Slatina (RS)
  10. Societe Generale–Splitska banka d.d., Split
  11. Zagrebačka banka d.d., Zagreb (RS)
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: