Working Capital COVID-19 Measure

• Private sector business entities – companies, crafts businesses, sole traders, family farms, cooperatives and institutions.
• Public sector business entities – companies and other entities (agencies and institutions, etc.) owned or majority-owned by the units of local or regional government and/or the Republic of Croatia.

Borrowers have to prove the consequences of the COVID-19 (coronavirus) pandemic.

• Financing of current business operations (e.g. purchase of raw materials, production materials, semi-products, small inventory, settlement of obligations towards suppliers, labour costs, general current operating expenses),
• Settlement of short-term obligations towards the state and settlement of other short-term obligations, excluding the repayment of debt to the owner, related entities and other third persons as well as excluding the settlement of loan obligations towards commercial banks and other financial institutions.

• In cooperation with commercial banks under the risk-sharing model – application and related documentation shall be submitted to the commercial bank by the borrower.
• As an exception, direct lending is possible for loans in the amount exceeding HRK 37 million (except family farms that are not within the VAT system and associations) – application and related documentation shall be submitted to HBOR by the borrower.

Generally, the minimum loan amount is HRK 100,000.00. The maximum loan amount depends on the specific features and creditworthiness of the borrower, purpose and structure of transaction as well as available HBOR’s sources of finance.

• HRK indexed to EUR
• HRK

• 2.00 percent per annum, fixed on HBOR’s share in the loan under the risk-sharing model

Depending on state aid rules, it is possible to reduce the interest rate in the first year of loan repayment to 0.00 percent per annum. Depending on the availability of funding sources, further reduction in the interest rate in the second and third year of loan repayment will be considered.

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).

• No fee charged

• Up to 6 months
• One-off or successively, based on the documentation evidencing the utilisation of loan for earmarked purposes

Loan funds are disbursed to the accounts of the suppliers/contractors and/or to the borrower’s account, depending on the purpose of the working capital.

• Up to 3 years including a grace period of up to 1 year

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

• Collateral is determined by the commercial bank

General Eligibility Criteria

List of Documentation and Commercial Banks

Decision on General Terms and Conditions of Lending Activities