The European Commission approved another Croatian programme for supporting the Croatian economy to mitigate the consequences of the coronavirus pandemic. The programmes were approved on the basis of the Temporary Framework for State Aid Measures adopted by the European Commission on 19 March 2020 as amended on 3 April 2020.


The first HBOR’s programme aimed at supporting the liquidity of exporters through insurance policies, that was approved by the European Commission a couple of day ago, provided a total lending potential at the level of approximately EUR 790 million, i.e. HRK 6 billion.


Favourable loans under state interest subsidy

A couple of days ago, in cooperation with the Ministry of Finance, HBOR submitted the second programme intended for small, medium-sized and large enterprises. The programme has been designed as an instrument of HBOR’s loans at favourable terms and conditions under interest subsidy provided by the state to be implemented through three main models:

  • framework loans to banks, where the state funds are to be channelled through HBOR at 0 percent interest rate constituting one half of the total interest rate, and the other half will be constituted by the interest rate of banks whose maximum level will be capped,
  • loans in cooperation with banks under the risk-sharing model, and
  • HBOR direct loans to business entities.


Additional EUR 1 billion for subsidised loans

The total lending potential for the measure of subsidised loans is estimated at EUR 1 billion, of which the amount of EUR 850 million relates to the first two models, whereas the lending potential of EUR 150 million relates to direct loans of up to EUR 800 thousand per borrower.


Consequently, through the measures stated in this second programme, the total lending potential of approximately EUR 1 billion will be earmarked for business entities affected by difficulties caused by the coronavirus, and it can be used to cover the working capital needs of entrepreneurs.


Therefore, through these two programmes approved so far, the lending potential of EUR 1.8 billion, i.e. more than HRK 13.5 billion intended for the real sector, is potentially released. This will have an additional impact on the reduction of damage and losses of the real sector.