EU Projects

1. Borrowers

Private sector business entities – companies, crafts businesses, sole traders, family farms, cooperatives, institutions and associations;

 

Public sector business entities – units of local and regional government (municipalities, cities and counties – hereinafter: ULRGs) and companies, institutions and agencies owned or majority-owned by ULRGs and/or the Republic of Croatia;

 

that meet the requirements of the tender for grants financed from the budget of the European Union and/or national sources and other foreign public sources.

2. Purpose of Loans

  • All eligible and ineligible expenses of the project (including the costs not included by the borrower in the application to tender that are an integral part of the project), where a maximum of 30% of the total loan can be approved for working capital that is not in the category of eligible expenses.

 

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 EUR 50,000 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, except for loans with interest subsidy from the NRRP funds).

 

*HBOR can consider financing 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, except for loans with interest subsidy from the NRPP funds.

5. Loan Currency

  • EUR

6. Interest Rate

Interest rate

minimum 3.05% per annum, fixed

to ULRGs, institutions and agencies majority-owned by them:

2.20% per annum, fixed

direct loans

ON LOANS THROUGH COMMERCIAL BANKS – in accordance with commercial bank’s business decision

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 EUR 5 million or more.

7. Interest Rate for Loans with Subsidy from the NRRP Funds

For borrowers and loans that meet the conditions prescribed by the Operational Programmes for the Implementation of Financial Instruments under the NRRP, provided that combining with Financial instruments under the NRRP is not prohibited by the relevant conditions of the tender for grants and related documentation, and that restrictions from the aid regulations are complied with by the financing*:

  • If a loan is approved by a commercial bank, the regular interest rate is determined by the commercial bank in accordance with its internal documents
  • If a loan is approved by HBOR, the regular interest rate is determined in accordance with item 6 of this Programme

 

Part of the regular interest rate is subsidised by HBOR, in its own name and for the account of the Republic of Croatia
Investments of the private and the public sectors in green and/or digital transition Interest rate reduction of up to 75% of the regular interest rate, but to a maximum of 3.00 percentage points
Investments of the private and the public sectors in special areas of the Republic of Croatia and/or RDI (research, development, innovations) and/or investments of the public sector aimed at recovery from the consequences of earthquake** Interest rate reduction of up to 65% of the regular interest rate, but to a maximum of 3.00 percentage points
Other investments of the private sector in competitiveness and resilience or the public sector in strengthening sustainability and quality of public infrastructure Interest rate reduction of up to 50% of the regular interest rate, but to a maximum of 3.00 percentage points

The maximum possible amount of subsidised interest for an individual loan is:

  • EUR 500,000.00 for micro, small and medium enterprises of the private sector
  • EUR 1,000,000.00 for Mid-caps and large private sector entities, and for public sector entities.

 

*NRRP – National Recovery and Resilience Plan

**Recovery from the consequences of earthquake includes investments by public sector entities aimed at rehabilitating, eliminating and/or reducing the consequences of earthquake (includes the reconstruction of existing and construction of new buildings, infrastructure etc. damaged or destroyed in earthquake).

8. Fees

  • Variable, in accordance with the Ordinance 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 Ordinance on Fees for HBOR Services valid on the day of calculation.

9. 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 financing contract relating to grant award, 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, the loan disbursement is possible before the conclusion of the financing contract relating to grant award, about which the decision is made by the commercial bank.

10. 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.

11. 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

12. 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

14. 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

Nova hrvatska banka 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

Slatinska banka d.d.
Slatina

Zagrebačka banka d.d.
Zagreb

contacts

kreditiranje(at)hbor.hr

Strossmayerov trg 9, 10000 Zagreb

Urudžbeni ured nalazi se privremeno na adresi Zelinska 3