Private Sector Investment

1. Borrowers

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

For the purpose of recovery from the consequences of earthquake and for stimulating the economic development of Sisak-Moslavina County – business entities of the private and public sectors that operate or will operate in Sisak-Moslavina County*.

 

*HBOR may also consider loan applications for recovery from the consequences of earthquake of business entities from the private and public sectors operating in Zagreb and Karlovac counties.

2. Purpose of Loans

  • Investments in fixed assets (tangible and intangible assets) for the purpose of business modernisation, introduction of new technologies, increase in capacities, investments in research and development and introduction of new products or services, promotion of environmental protection, energy efficiency and renewable energy resources projects, tourist capacities and facilities as well as promotion of new employment
  • Investments in fixed assets (tangible and intangible assets) for the purpose of recovery from the consequences of earthquake and for stimulating the economic development of Sisak-Moslavina County*.
  • Working capital: up to 30% of the contracted loan amount
  • Natural Capital Financing Facility (NCFF) finance projects that contribute to the conservation and sustainable use of natural capital, as well as adaptation to climate change by using natural-based solutions. These projects include green infrastructure projects, green entrepreneurship, payment for ecosystem services and biodiversity offsets and compensation.

*HBOR may also consider loan applications for recovery from the consequences of earthquake of business entities from the private and public sectors operating in Zagreb and Karlovac counties.

3. Manner of Implementation

  • In cooperation with commercial banks (except NCFF) via commercial banks or through risk-sharing model – application and related documentation shall be submitted to the commercial bank by the borrower
  • Direct lending to borrowers (except family farms that are not within the VAT system and associations) – application and related documentation shall be submitted to HBOR by the borrower

4. Loan Amount

  • Generally, the minimum loan amount is EUR 30,000*
  • The maximum loan amount is not limited and depends on the specific features and creditworthiness of the borrower, purpose and structure of investment as well as available HBOR’s sources of finance. Financing through loan can be up to 75% of the estimated investment value, VAT not included**
  • For loans intended for the recovery from the consequences of earthquake and for the economic development of Sisak-Moslavina County: the maximum loan amount can be up to 100% of the estimated value of investment, including VAT, provided that financing of VAT for the borrowers that operate within the VAT system is possible only through the award of de minimis. In such a case, VAT has to be allocated to working capital in the breakdown of investment contained in the loan application;

 

*Amounts in loan programmes stated in EUR relate to the equivalent value in another currency if loan is approved in another currency.

**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.

5. Loan Currency

  • HRK indexed to EUR

6. Interest Rate

Interest rate Possibilities of reduction Criteria

2% p.a., fixed

for business entities investing in activities of special interest* that are market competitive*, or business entities investing in areas of special state concern* that are market competitive*

– 0.2 percentage point for youth employment
up to – 2 percentage point with County/City/Municipality subsidy
up to – 1 percentage point for loans from NCFF natural capital financing facility credit line

3% p.a., fixed

for other business entities

– 0.2 percentage point for youth employment
up to – 2 percentage points with County/City/Municipality subsidy
up to – 1 percentage point for loans from NCFF natural capital financing facility credit line

1% p.a., fixed

for business entities investing in the recovery from the consequences of earthquake and for economic development of Sisak-Moslavina County

– 0.2 percentage point for youth employment
up to – 1 percentage point for loans from NCFF natural capital financing facility credit line

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.

 

*Criteria for defining market competitive business, Activities of special interest entities and Special areas of the Republic of Croatia can be found in the General Eligibility Criteria, which are a constituent part of this loan programme.

 

7. Interest rate for loans with subsidy under 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:

  • If a loan is approved by a commercial bank, the regular interest rate is determined by the bank in accordance with its internal documents, and 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:
    • For investments in green and/or digital transition: up to 75% of the regular interest rate, and a maximum of 3.00 p.p.
    • For investments in special areas of the Republic of Croatia and/or RDI (research, development and innovation): up to 65% of the regular interest rate, and a maximum of 3.00 p.p.
    • For other investments in competitiveness and resilience: up to 50% of the regular interest rate, and a maximum of 3.00 p.p.

 

The highest possible amount of subsidised interest for a single loan is:

  • EUR 500,000.00 for micro, small and medium-sized enterprises
  • EUR 1,000,000.00 for mid-caps and large enterprises,

In HRK equivalent amount by applying the middle exchange rate of the Croatian National Bank on the day of calculation.

 

*NRRP – National Recovery and Resilience Plan

8. Fees

  • Variable, in accordance with the Ordinance on Fees for HBOR Services valid on the day of calculation:
    • Loan application fee: 0.50% on the contracted loan amount*,
    • Commitment fee: 0.25% on the contracted undisbursed loan amount**,
  • For loans intended for the recovery from the consequences of earthquake and for the economic development of Sisak-Moslavina County:
    • no loan application processing fee,
    • no commitment fee
    • no fee for changing the terms and conditions of loan

Other fees in accordance with the Ordinance on Fees for HBOR Services valid on the day of calculation.

 

*For Natural Capital Financing Facility (NCFF): Loan application fee is 0.40% (minimum HRK 500.00) on the contracted loan amount, one-off, collected before loan disbursement

**For Natural Capital Financing Facility (NCFF): No Commitment fee

9. Period and Manner of Loan Disbursement

  • Generally, up to 12 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 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 loan for earmarked purposes
  • For loans intended for the recovery from the consequences of earthquake and for the economic development of Sisak-Moslavina County, it is allowed to make a refund for borrowers’ investments made after the earthquake, until the submission of loan application (for such a refund, commercial banks are not obliged to notify HBOR in advance).

10. Repayment Period

  • Up to 14 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 investments in tourism or if the investment study indicates the need for longer maturity and/or grace period: up to 17 years, including grace period of up to 4 years.

11. Manner of Repayment

  • Generally, in equal monthly, three-monthly or semi-annual instalments

12. Collateral

  • 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, pledge of business shares, 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. 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