The Management Board of HBOR made a decision on temporary reduction of the nominal interest rate under the loan programme for financing of EU public sector projects to 2.5 percent. This reduction relates to loans that will be approved until the end of 2018.


After the decision on reduction of interest rates for the financing of EU private sector projects, rural development, fisheries and wine envelope passed in 2017, a decision on temporary reduction of interest rate for public sector projects has been made.


Further to this, in 2018, EU rural development, fisheries and wine envelope projects can be financed at an interest rate as low as 1.7 percent, EU private sector projects at an interest rate as low as 2.4 percent, and public sector projects at an interest rate of 2.5 percent. Before the mentioned reductions, minimum interest rates under all programmes for financing of EU projects amounted to 3 percent.


Valid minimum interest rates

Name of the loan programmeInterest rate
Repayment term up to 10 years
Interest rate
Repayment term over 10 years
Period of application of temporary reduction measure
EU rural development, fisheries and wine envelope projects1.7%1.9%31 December 2018
EU private sector projects2.4%2.7%30 June 2018
EU public sector projects2.5%2.5%31 December 2018


„By reducing interest rates and retaining all other favourable terms and conditions of loans, such as long repayment terms, possibility of approving grace period and use of a grant as own share, we intend to encourage investments of entrepreneurs and to accelerate the dynamics of use of available proceeds of the EU funds,“ said Tamara Perko, President of the Management Board of HBOR.


So far, HBOR has supported more than 600 projects through the programmes for the financing of EU projects with an amount exceeding HRK 3.4 billion.


Loans are approved directly, via commercial banks or through the risk-sharing model with a repayment period of up to 15 years and a possible grace period of up to 3 years or up to 5 years for planting and/or restructuring perennial crops and for the public sector. Additional benefit lies in the possibility of using grant funds for the purpose of reducing the principal amounts of loans in certain circumstances, whereas HBOR can accept 70 percent of the grant amount as own funding in direct lending.


Reduction of the interest rate charged on EU projects of rural development, fisheries and wine envelope as well as public sector projects applies to all loans approved by 31 December 2018 and on private sector projects by 30 June 2018. The final interest rate charged to individual final borrower depends on the assessment of the credit rating and the offered collateral.


Loan funds approved under these programmes are intended for the completion of the funding plan for the implementation of projects and can be used for the co-financing of eligible investments and of investments that are constituent parts of projects but are not eligible for the financing from EU funds.


Favourable loan terms and conditions for projects of public interest also under other HBOR’s programmes

In addition to reducing the interest rates charged on projects co-financed from EU funds, HBOR has reduced the interest rates to 2.5 percent on projects implemented by units of local or regional government or legal entities in their majority ownership and/or majority ownership of the Republic of Croatia that are financed under other loan programmes.


As such projects usually involve high-amount loans, the collection of commitment fee has been abolished in order to additionally reduce the burden and overall cost on the borrowers. Loans are approved for this purpose either in kunas or in kunas indexed to foreign currency.


This measure applies to the loans approved by 30 June 2018 and relates to private entities implementing the projects of public interest that are not primarily profit-oriented.