COVID-19 Measure for SMEs in the Tourism Industry was implemented as a temporary measure under the Working Capital loan programme and was applied on applications received and approved by HBOR by 5th June 2020.
BorrowersMicro, small and medium-sized enterprises as defined by the Small Business Development Promotion Act and the European Commission Recommendation 2003/361/EC of 6 May 2003 with registered main activities as follows: Activities
- Accommodation and food service activities (National Classification of Activities - NKD 55.10, 55.20, 55.30, 55.90, 56.10, 56.21, 56.29);
- Travel agency and tour operator activities (NKD 79.11, 79.12);
- Renting and leasing of water transport equipment – charter agencies (NKD 77.34);
- a decline in operating income/receipts in Q1 2020 has been recorded compared to Q1 2019 or lower operating income/receipts are expected for 2020 than operating income/receipts for 2019; and/or
- reservations, events, congresses, seminars etc. have been cancelled; and/or
- contracted business, reservations and/or orders have been cancelled.
Purpose of Loans
- Financing of salaries, overheads and other basic operating expenses (the so-called ‘idle mode’); purchase of raw materials, settlement of obligations towards suppliers and other current operating expenses; working capital for the preparation of the tourist season; except for credit obligations to commercial banks and other financial institutions and VAT
Manner of Implementation
- Direct loans – borrowers submit their loan applications and related documentation to HBOR
- The minimum loan amount is EUR 100,000.00 in HRK equivalent amount
- The maximum loan amount is EUR 1,250,000.00 in HRK equivalent amount, but generally no more than 25% of the total operating income/receipts of the borrower. The maximum loan amount depends on the creditworthiness of the borrower and the evaluation of the transaction risk.
- HRK indexed to EUR
- As an exception, HRK (for loans approved under ESIF Limited Portfolio Guarantee of HAMAG-BICRO)
- 0.00% p.a., fixed for the loan repayment period up to 3 years
- 1.50% p.a., fixed for the repayment period from the 4th to the 5th year
The stated interest rates are reduced interest rates paid by the borrower, while the regular interest rates are set in the manner that the regular interest rate for the loan repayment period up to 3 years is 2%, and the regular interest rate for the loan repayment period from the 4th to the 5th year is 3.5%.
- No fees charged
Period and Manner of Loan Disbursement
- Up to 12 months
- One-off or successively, based on the documentation evidencing the earmarked utilisation
- Up to 5 years, including a grace period of up to 1 year
Manner of Repayment
- In equal three-monthly or six-monthly instalments
- Loans will be secured by a guarantee in the form of insurance policies for exporters’ working capital loan portfolio or by a HAMAG-BICRO guarantee, in accordance with the rules of the Export Credit Insurance and HAMAG-BICRO, as well as by bills of exchange and debentures.
- Exceptionally, and depending on the risk assessment of the transaction and the borrower and depending on the availability of the collateral in relation to each individual transaction and the borrower, HBOR is authorised to negotiate other collateral with the borrower in accordance with HBOR’s internal documents.