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 HRK 200,000.00
  • 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
  • For loans intended for the procurement of mobile homes**: in accordance with the relevant document of the supplier, where the borrower’s own share is determined depending on the state aid regulations and the risk assessment of the borrower and the project.

 

*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.

 

**Exclusively direct loans for the purchase, transport and assembly of new mobile homes for regular operations of borrowers, provided that the existing mobile homes have been donated or sold to the  relevant institutions of the Republic of Croatia/Directorate for Commodity Reserves with the aim of providing housing to population and premises to business entities in the area affected by the earthquake.

5. Loan Currency

  • HRK indexed to EUR

6. Interest Rate

Interest rate Possibilities of reduction Criteria

1.5% p.a., fixed

for market competitive business entities* investing in activities of special interest*

– 0.2 percentage point for youth employment****
up to – 1.5 percentage points with County/City/Municipality subsidy*****
up to – 1 percentage point for loans from NCFF credit line for natural capital financing******

2% p.a., fixed

for 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******

1.5%** p.a., fixed

for business entities procuring new mobile homes***

– 0.2 percentage point for youth employment****

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).

 

*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.

**The total regular interest rate is 2.50% p.a., fixed, of which the Ministry of Tourism and Sports subsidises interest rate in an amount of 1.00 p.p., fixed, for the entire loan period.

***Exclusively direct loans for the purchase, transport and assembly of new mobile homes for regular operations of borrowers, provided that the existing mobile homes have been donated or sold to the  relevant institutions of the Republic of Croatia/Directorate for Commodity Reserves with the aim of providing housing to population and premises to business entities in the area affected by the earthquake.

 

 

Conditions for the reduction of interest rates

****Reduction of interest rate for youth employment, SME Statement, Mid-Cap Statement

*****Reduction of interest rate with County/City/Municipality subsidy

******Reduction of interest rate for 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 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,
    • early repayment by using own funds or other funds received for the recovery from earthquake: no fee
    • early repayment – refinancing through a bank loan: 0.50% of the amount of early repaid principal, at least HRK 500
  • For loans for the procurement of new mobile homes***:
    • no loan application processing fee,
    • no commitment fee,
    • early repayment by using own funds: no fee,
    • early repayment – refinancing through a bank loan: 0.50% of the amount of early repaid principal, at least HRK 500.00.

and 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 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

***Exclusively direct loans for the purchase, transport and assembly of new mobile homes for regular operations of borrowers, provided that the existing mobile homes have been donated or sold to the  relevant institutions of the Republic of Croatia/Directorate for Commodity Reserves with the aim of providing housing to population and premises to business entities in the area affected by the earthquake

8. Period and Manner of Loan Disbursement

  • Generally, up to 12 months (for the procurement of new mobile homes* generally up to 6 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).

 

*Exclusively direct loans for the purchase, transport and assembly of new mobile homes for regular operations of borrowers, provided that the existing mobile homes have been donated or sold to the  relevant institutions of the Republic of Croatia/Directorate for Commodity Reserves with the aim of providing housing to population and premises to business entities in the area affected by the earthquake

9. 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,
  • For the procurement of new mobile homes*: generally up to 8 years, including grace period of up to 1 year.

 

 

*Exclusively direct loans for the purchase, transport and assembly of new mobile homes for regular operations of borrowers, provided that the existing mobile homes have been donated or sold to the  relevant institutions of the Republic of Croatia/Directorate for Commodity Reserves with the aim of providing housing to population and premises to business entities in the area affected by the earthquake

.

10. Manner of Repayment

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

11. 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

13. 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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