HBOR Interest-Free Lending in Osijek-Baranja County Continued
Business Cooperation Agreement on the implementation of loan programme "Youth, Female and Start-up Entrepreneurship" and Business Cooperation Agreement on the implementation of loan programme "Private Sector Investment" have been signed with Osijek-Baranja County.

Loan amount and age limit increased

- We have raised the lending potential from 64 to 90 million kunas, and the loans are intended for start-up entrepreneurs, entities operating in the market, young people and women. We have "eased" the criteria in line with market demand and, therefore, individual loan amounts have been increased from HRK 700 thousand to HRK 2 million, age limit has been shifted from 30 to 40 years of age, and it is now sufficient for women entrepreneurs in medium-sized and large companies to hold important managerial functions and they are no longer required to be majority owners – pointed out Hrvoje Čuvalo, Member of the Management Board of HBOR.

- With our subsidy, interest rate on HBOR’s loans for youth, female and start-up entrepreneurship will remain zero percent, whereas subsidy of the County for private sector investment will be 2 percent, which means that interest rate on loans will range from zero to 0.8 percent. After today's signing, credit lines are open, and all those interested can contact us at the Administrative Department for the Economy or HBOR. Soon, we plan to sign contracts also with commercial banks so that entrepreneurs will be able to raise loans from the banks – stressed Ivana Katavić Milardović, Head of the Administrative Department for the Economy on the occasion of today's signing.

Loans are intended for investment in fixed assets, and working capital can be financed with up to 30 percent of the contracted loan amount.

Interest rate subsidised with up to two percentage points

Loan programme "Youth, Female and Start-up Entrepreneurship" is intended for private sector business entities: companies, crafts businesses, sole traders, cooperatives and institutions that are young entrepreneurs, start-ups or female entrepreneurs.

Minimum loan amount: HRK 200,000.00, maximum loan amount: HRK 2,000,000.00. Interest rate: up to 2 percent per annum, fixed, with a possibility of reduction.

Loan programme "Private Sector Investment" is intended for private sector business entities: companies, crafts businesses, sole traders, cooperatives and institutions.

Minimum loan amount: HRK 200,000.00, maximum loan amount is not limited. Interest rate: from 1.5 to 3 percent per annum, fixed, with a possibility of reduction if young and innovative entrepreneurs are employed.

- We are satisfied with our cooperation with HBOR and are pleased that the lending potential has been increased by these two credit lines. I believe that this activity and our joint efforts will contribute to the preservation of existing jobs and will enable entrepreneurs to create new ones throughout our county. HBOR continuously invests in our county, and I believe that this cooperation will continue in the future – said Petar Lagator, deputy prefect of Osijek-Baranja county.

Interest subsidy from the budget of the County amounts to up to two percentage points. Lending potential for the loan programme "Youth, Female and Start-up Entrepreneurship" equals HRK 40 million and for the loan programme "Private Sector Investment" HRK 50 million.