Besides moratorium on and rescheduling of obligations, HBOR offered a new measure to entrepreneurs in the form of working capital loans at favourable terms and conditions in cooperation with commercial banks. The main benefits of the new measure: interest rate as low as 0 percent on HBOR’s share in the loan and use of HBOR’s portfolio insurance as collateral.


Under the Working Capital Covid-19 Measure, loans will be approved through the risk sharing model in cooperation with commercial banks – 50 percent of funds from HBOR’s sources at an interest rate of as low as 0 percent in the first year of loan repayment, whereas 2 percent interest will be charged in the second and third year of loan repayment with a possibility of reducing this interest rate in the next years as well (level of interest depends on the state aid regulations). The other part of the loan will be approved from commercial bank’s sources.


Entrepreneurs have to submit their applications for these funds to one of twelve banks with whom HBOR has agreed to cooperate on this loan programme.


Loans will be approved for a period of up to 3 years and may be drawn down by entrepreneurs having been affected by the COVID-19 pandemic for the purposes of financing their current operations and settling short-term obligations. The exporters (those operating in the tourism industry included) will be able to use HBOR’s portfolio loan insurance as collateral.


HBOR’s portfolio insurance as collateral

Entrepreneurs from all sectors of the economy, tourism included, having generated 20 percent of revenues from exports in the past business year will be able to use HBOR’s portfolio insurance as a guarantee for up to 50 percent of the total loan amount approved. Portfolio insurance will facilitate and accelerate the process of obtaining new liquidity loans. Soon, these benefits will also be made available to indirect exporters (suppliers of exporters). Entrepreneurs will also be able to use export-credit insurance programmes offered by HBOR for separate insurance policies.


Development of new and implementation of existing programmes

In cooperation with local and foreign institutions, HBOR has been developing other measures and will, in line with its role, adapt its activities and programmes to the requirements and circumstances in which Croatian entrepreneurs operate. This primarily relates to the development of new guarantee schemes and the financing of sectors affected by the pandemic. Furthermore, in cooperation with commercial banks, HBOR negotiates other forms of funding liquidity needs of entrepreneurs.

HBOR’s funds for the financing of investment activities and current loan programmes for the financing of working capital (Pre-Shipment Export Finance and Working Capital) are, and will be in the future, available to Croatian entrepreneurs and the public sector at favourable terms and conditions. Interest rates of 2 percent and lower will be charged to a large number of entrepreneurs under these programmes.