1. Final Borrowers
Companies, crafts businesses, family farms, co-operatives, institutions with the minimum capital and reserves of 10% on the liabilities side of the balance sheet.
Loan approval to final borrowers shall not be considered if they:
- paid out net profit in the last two business years
- paid off their borrowing in the last two business years, apart from loans to related persons for operating activities and development
Also eligible as final borrowers are:
- agricultural producers (family farms, crafts businesses, companies, co-operatives and institutions) that will use the proceeds of the loan to refinance existing loans
- companies and other legal entities owned by the Republic of Croatia, for which a guarantee has been issued by the Republic of Croatia, that will use the proceeds of the loan to refinance existing loans
The above preconditions shall not apply to such borrowers.
Pursuant to the Conflict of Interest Prevention Act (Official Gazette of the Republic of Croatia Nos. 26/11, 12/12, 126/12, 57/15) and all subsequent changes and amendments, restrictions are in force on lending to business entities whose ownership interests are owned by public officials and their family members. The provisions of these restrictions are deemed a constituent part of HBOR loan programmes. The full wording of the restrictions can be found at: Restrictions on Lending to State Officials.
2. Purpose of Loans
Loans are intended for the financing of investment aimed at changing the maturity of sources of funds on business entities balance sheets.
3. Manner of Implementation
- through commercial banks
- risk-sharing model
- direct lending – to companies and other legal entities owned by the State, for which a guarantee has been issued by the Republic of Croatia, in accordance with the procedures set forth in the Act on the Execution of the State Budget of the Republic of Croatia that is in effect
4. Loan Amount, Disbursement Period and Repayment
5. Interest Rate
Interest rate is variable pursuant to a decision made by HBOR’s Management Board in accordance with HBOR’s Ordinance on Setting the Reference and Discount Rates, the Decision on Interest Rates with the Interest Calculation Regulations, and the criteria set forth in the Guidelines on State Aid for Rescuing and Restructuring of Non-Financial Entrepreneurs in Difficulty.
Depending on the capabilities of the final borrower in obtaining the right to the award of de minimis aid, loans are approved at a general interest rate that is determined at least as reference interest rate or at a promotional interest rate (i.e. effective interest rate that is lower than the reference interest rate).
Financing at promotional interest rate is possible only in accordance with the criteria set forth in the Guidelines on State Aid for Rescuing and Restructuring of Non-Financial Entrepreneurs in Difficulty and de minimis aid regulations.
6. Loan Application Fee
0.5% one-off, charged on the committed loan amount, applied on all loan applications received by HBOR as of 1 January 2017.
7. Commitment Fee
0.25% p.a., charged on the undisbursed loan amount, starting 30 days after the loan contract date
For securing due fulfilment of loan obligations, HBOR accepts:
- bills of exchange and debentures
- pledge of property or transfer of fiduciary title to property supported by a property insurance policy endorsed in favour of HBOR
- bank guarantees
- guarantees issued by HAMAG-BICRO
- other collateral customary in the banking operations
In the case of direct lending to companies or other legal entities owned by the State, a guarantee issued by the Republic of Croatia is required as mandatory collateral.
In the case of loans on-lent via commercial banks, collateral is determined by commercial banks.