EU Projects

1. Borrowers

Private and public sector business entities (ULRGs and entities owned or majority-owned by them and/or owned or majority-owned by the Republic of Croatia) that meet the requirements of the tender for grants under which they submit their applications, including the requirements relating to the planned investment of:

  • European Structural and Investment Funds (ESI Funds) or
  • EU Agricultural and Fisheries Funds (funds of the Common Agricultural and Fisheries Policy, or the funds of the European Agricultural Fund for Rural Development and/or the European Agricultural Guarantee Fund and/or the European Agricultural and Fisheries Fund)
  • Business Development and Innovation Croatia, that is part of the financial mechanism of the European Economic Area (EEA) and the 2014-2021 Norwegian Financial Mechanism implemented by the Norwegian agency Innovation Norway

2. Purpose of Loans

  • In accordance with the tendering procedure for grants under which the borrower has submitted application including:
    • Eligible expenses – project expenses to be financed from the grant proceeds
    • Ineligible expenses – exclusively expenses of the project for which application has been submitted under the tendering procedure that cannot be financed from the grant proceeds (fixed assets and working capital up to 30% of the contracted loan amount*)
  • Natural capital projects financed under the Natural Capital Financing Facility (NCFF): (conservation and adaptation of ecosystems through green infrastructure projects, green entrepreneurship, payment for ecosystem services and biodiversity offsets and compensation).

*Working capital, that is considered to be eligible expense, is not included in the calculation.

3. Manner of Implementation

  • Via commercial banks (except for NCFF) or under the risk-sharing model – loan application and related documentation shall be submitted to the commercial bank,
  • Direct lending (except for family farms that are not within the VAT system and associations) – loan application and related documentation shall be submitted to HBOR,
    • Note: it is possible to issue an advance payment guarantee (in such case, the application for guarantee is submitted together with the loan application).

4. Loan Amount

Minimum loan amount is generally HRK 200,000.00, and maximum loan amount depends on the specific features and creditworthiness of the borrower, purpose and structure of investment as well as available HBOR’s sources of finance. The following can be financed:

  • Private sector entities: up to 75% of the estimated investment value, VAT not included*, whereby HBOR can accept as the borrower’s own funds up to 70% of the amount that the borrower will obtain through a grant (if the loan is approved via commercial bank, the commercial bank will determine the borrower’s own funds)
  • Public sector entities: up to 100% of the estimated investment value (it is also possible to finance the VAT).
  • Natural capital projects financed under the NCFF: the sum of loan amounts under the NCFF and grant amounts must not exceed 100% of total investment costs for private sector entities that employ fewer than 3000 employees, or 90% of total investment costs for private sector entities that employ at least 3000 employees and for public sector entities

*HBOR can consider financing of 100% of the estimated investment value, VAT included, if the borrower delivers goods or provides services that are excluded from the VAT calculation or for the borrowers not operating within the VAT system.

5. Loan Currency

  • HRK indexed to EUR
  • As an exception, HRK loan can be approved to ULRGs and institutions and agencies owned by them

6. Interest Rate

Interest rate Possibility of reduction Criteria

minimum 1.70% per annum, fixed

repayment period up to (and including) 10 years

minimum 1.90% per annum, fixed

repayment period more than 10 years

up to – 1 percentage point NCFF Natural Capital Financing Facility*
to ULRGs, institutions and agencies majority-owned by them:

1.20% per annum, fixed

direct loans

up to 1.50% per annum, fixed

loans on-lent through commercial banks

up to – 1 percentage point NCFF Natural Capital Financing Facility*

In certain cases, interest rate can be higher depending on the cost of the available sources of funding and the regulations on the award of state aid and/or de minimis aid. HBOR reserves the right to determine the level of interest rate different from the one specified in the programme for each individual loan amounting to HRK 50 million or more (i.e. equivalent value in another currency).

*Conditions for interest rate reduction Natural Capital Financing Facility (NCFF) 

7. Fees

  • Variable, in accordance with the Decision on Fees for HBOR Services valid on the day of calculation:
    • Loan application processing fee*:
      • 0.50% on the contracted loan amount;
      • to ULRGs and institutions and agencies majority-owned by them: 0.20% on the contracted loan amount.
    • Commitment fee**:
      • 0.25% on the contracted undisbursed loan amount;
      • to public sector entities: no fee,
    • Other fees:
      • in accordance with the Decision on Fees for HBOR Services valid on the day of calculation.

 

*For Natural Capital Financing Facility (NCFF): loan application processing fee is 0.40% on the contracted loan amount

**For Natural Capital Financing Facility (NCFF): no commitment fee is charged

8. Period and Manner of Loan Disbursement

  • Generally, up to 18 months. Depending on the purpose and the dynamics of investment, it is also possible to approve a longer period of loan disbursement.
  • Part of the loan intended for the financing of fixed assets is disbursed to the account of seller/supplier/contractor or, as an exception, to the special/project account opened for the realisation of the financed project based on the documentation for utilisation of loan for earmarked purposes
  • Part of the loan intended for the financing of working capital can be disbursed to the account of the borrower, with obligatory justification by documentation evidencing the use of the loan for earmarked purposes.

For loans approved directly by HBOR, it is possible:

  • To disburse the loan before the conclusion of the Contract on the Award of Grant from the ESI Funds, if the borrower has available funds from own resources (grants do not represent own funds) for the completion of the funding plan,
  • To disburse the loan before the delivery of the Decision on the Award of Grant from the EU Agricultural and Fisheries Funds, if the borrower has available funds from own resources (grants do not represent own funds) for the completion of the funding plan.

For loans approved via commercial banks, it is possible to contract:

  • Loan disbursement before the conclusion of the Contract on the Award of Grant from the ESI Funds, about which the decision is made by the commercial bank,
  • Loan disbursement before the delivery of the Decision on the Award of Grant from the EU Agricultural and Fisheries Funds, about which the decision is made by the commercial bank.

9. Repayment Period

  • Up to 15 years, with up to 3-year grace period included, depending on the purpose and structure of investment

As an exception to the mentioned, depending on the purpose and structure of investment, it is possible to approve the following repayment and grace periods:

  • For the planting and/or restructuring of perennial crops in agriculture: up to 15 years, including grace period of up to 5 years
  • For units of local or regional government, entities majority-owned by units of local or regional government or the Republic of Croatia: up to 15 years, including up to 5-year grace period,
  • For investments in tourism or if the investment study indicates the need for longer maturity and/or grace period: up to 17 years, up to 4-year grace period included.

10. Manner of Repayment

  • Generally, in equal monthly, three-monthly or semi-annual instalments
  • HBOR reserves the right to contractually determine with the borrower that the borrower shall, after the project completion, use the received grant that has not been utilised for the project investment to reduce the unrepaid loan principal, which shall not be considered the premature, but regular loan repayment

11. Collateral

  • Public sector entities:
    • Financing of ULRGs is possible if secured only with a bill of exchange and a debenture, depending on the assessment of HBOR and/or the commercial bank
    • For loans to other public sector business entities:
      • Lending in cooperation with commercial banks: collateral is determined by the commercial bank
      • Risk sharing model: collateral is determined by the commercial bank and HBOR
      • Direct lending: HBOR agrees the collateral with the borrower in accordance with HBOR’s internal documents (e.g. bills of exchange, debentures, pledge of property with insurance policy for the property endorsed in favour of HBOR, bank guarantees and other security instruments customary in banking operations), and the risk assessment of the investment and the borrower.

 

  • Private sector entities:
    • Lending in cooperation with commercial banks: collateral is determined by the commercial bank
    • Risk sharing model: collateral is determined by the commercial bank and HBOR
    • Direct lending: HBOR agrees the collateral with the borrower in accordance with HBOR’s internal documents (e.g. bills of exchange, debentures, pledge of property with insurance policy for the property endorsed in favour of HBOR, bank guarantees, guarantees of HAMAG-BICRO and other security instruments customary in banking operations), and the risk assessment of the investment and the borrower

13. List of Commercial Banks Co-operating with HBOR on the Loan Programme

Addiko Bank d.d.
Zagreb

Agram banka d.d.
Zagreb

Banka Kovanica d.d.
Varaždin

BKS Bank AG
Glavna podružnica Hrvatska

Croatia banka d.d.
Zagreb

Erste & Steiermärkische bank d.d.
Rijeka

Hrvatska poštanska banka d.d.
Zagreb

Istarska kreditna banka d.d.
Umag

J&T banka d.d.
Varaždin

Karlovačka banka d.d.
Karlovac

Kentbank d.d.
Zagreb

OTP BANKA d.d.
Split

Partner banka d.d.
Zagreb

Podravska banka d.d.
Koprivnica

Privredna banka Zagreb d.d.
Zagreb

Raiffeisenbank Austria d.d.
Zagreb

Sberbank d.d.
Zagreb

Slatinska banka d.d.
Slatina

Zagrebačka banka d.d.
Zagreb

contacts

Strossmayerov trg 9, 10000 Zagreb

Urudžbeni ured nalazi se privremeno na adresi Zelinska 3

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