Working Capital for Rural Development
Eligible borrowers are farmers and entities doing business in the agricultural products processing industry as well as entities doing business in the forestry industry set up in the following legal forms:
- family farms,
- crafts businesses registered for performing activities in the agricultural industry,
- companies (processing entities included),
- co-operatives (processing entities included).
The borrowers are obliged to prove that they have difficulties in doing business as a consequence of the pandemic caused by COVID-19 virus in accordance with the criteria adopted by the Ministry of Agriculture.
2. Eligibility Criteria
Eligible are those borrowers whose operations take place under the following measures, sub-measures and types of operations under the Rural Development Programme of the Republic of Croatia for the 2014-2020 (RDP):
|Measure 4: Investments in physical assets|
|Sub-measure 4.1: Support for investments in agricultural holdings||
|Sub-measure 4.2: Support for investments in processing/marketing and/or development of agricultural products||
|Measure 6: Farm and business development|
|Sub-measure 6.4: Support for investments in creation and development of non-agricultural activities in rural areas||
|Measure 8: Investments in forest area development and the improvement of forest viability|
|Sub-measure 8.6: Support for investments in forestry technologies and in processing, mobilisation and marketing of forest products||
3. Purpose of Loans
• Financing of working capital needed for the elimination of instabilities in production and financing of current operations (preparation of production, raw materials, other operating costs, labour costs, settling of obligations towards suppliers and other current operating costs except for loan obligations towards commercial banks and other financial institutions as well as VAT)
• Refunding of existing loans is not eligible
• Refund of previously invested funds will be accepted by HBOR for the payments made as a rule not longer than 3 (three) months before the submission of loan application
4. Manner of Implementation
5. Loan amount, disbursement period and repayment
6. Interest Rate
0.5% per annum, fixed
No fees charged
Debentures and blank debentures of borrowers and, depending on the assessment of risk, debentures and blank debentures of associated entities
9. Roles in Implementation
The Croatian Bank for Reconstruction and Development (Hrvatska banka za obnovu i razvitak), the Ministry of Agriculture and the Paying Agency for Agriculture, Fisheries and Rural Development entered into the Agreement on Financing for the Implementation of Financial Instrument “Working Capital for Rural Development”.
Irregularity reports and complaints on loan rejection decisions can be submitted to the email address: firstname.lastname@example.org.