Public Sector Investment

1. Borrowers

Public sector business entities – units of local or 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.

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

 

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

 

2. Purpose of Loans

  • Capital investments of public sector business entities aiming to encourage projects of environmental protection, energy efficiency and renewable energy resources as well as development of social and business infrastructure in general
  • Capital investments of public sector business entities 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 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)

 

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

3. Manner of Implementation

  • In cooperation with commercial banks (except for 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 – application and related documentation shall be submitted to HBOR by the borrower

4. Loan Amount

  • Generally, minimum loan amount is HRK 300,000.00
  • 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 100% of the estimated investment value (it is also possible to finance the corresponding VAT).

5. Loan Currency

  • HRK
  • HRK indexed to EUR

HBOR reserves the right to determine the currency for each individual loan in the amount of HRK 50 million or more (i.e. equivalent value in another currency).

6. Interest Rate

Interest rate Possibility of reduction Criteria

1.75% per annum, fixed

to borrowers from special areas of the Republic of Croatia*

2% per annum, fixed

to borrowers from other areas of the Republic of Croatia

1% per annum, fixed

to borrowers investing in recovery from the consequences of earthquake and the economic development of Sisak-Moslavina County

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

1.1% per annum, fixed

on direct loans to borrowers from special areas of the Republic of Croatia*

1.2% per annum, fixed

on direct loans to borrowers from other areas of the Republic of Croatia

up to 1.5% per annum, fixed

on loans to borrowers through commercial banks

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

 

*Special areas of the Republic of Croatia are defined in the General Eligibility Criteria, which are a constituent part of this loan programme.

 

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:
      • no fee;
    • Other fees:
      • in accordance with the Decision on Fees for HBOR Services valid on the day of calculation.
  • On 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,
    • no fee for early repayment by using own funds or other funds received for the recovery from earthquake,
    • early repayment – refinancing through a bank loan: 0.50% on the amount of early repaid principal, at least HRK 500.00.

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

8. 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).

 

9. Repayment Period

  • Up to 15 years, with up to 5-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, for investments in tourism or if the investment study indicates the need for longer maturity, it is possible to approve the repayment period of 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

11. Collateral

  • 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

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