Working Capital

1. Borrowers

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

  • 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 financial institutions, the state and settlement of other short-term obligations, excluding the repayment of debt to the owner, related entities and other third persons, with the maximum repayment period of up to 12 months
  • For the purpose of recovery from the consequences of earthquake and for stimulating the economic development of Sisak-Moslavina County – business entitites from 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

3. Manner of Implementation

  • In cooperation with commercial banks (via commercial banks or through risk-sharing model) – application and related documentation shall be submitted to the commercial bank by the borrower

In the case of lending through the risk-sharing model, the commercial bank as the applicant cannot use the loan funds to reduce its exposure towards the borrower.

  • Direct lending is possible for:
    • 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
    • loans in the amount exceeding EUR 100,000 for the recovery from the consequences of earthquake and for the economic development of Sisak-Moslavina County (except for family farms that are not within the VAT system and associations) – the borrower submits the Application and the accompanying documentation to HBOR

4. Loan Amount

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 investment as well as available HBOR’s sources of finance.

5. Loan Currency

Loan Currency is determined by HBOR.

  • HRK
  • HRK indexed to EUR

6. Interest rate

Interest rate Possibilities of reduction Criteria

2% p.a., fixed

short-term loans and short-term revolving loans

– 0.2 percentage point for youth employment*
– 1 percentage point with County/City/Municipality subsidy**

3.5% p.a., fixed

long-term loans

– 0.2 percentage point for youth employment*
– 1 percentage point with County/City/Municipality subsidy**

0.5% p.a., fixed

for short-term and long-term loans for the recovery from consequences of earthquake and for economic development of Sisak-Moslavina County

– 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).

 

Conditions for interest rate reduction

*Interest rate reduction for youth employment, SME Statement, Mid-Cap Statement

**Interest rate reduction with County/City/Municipality subsidy

 

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:
      • For public sector entities: no fee
      • For other entities: 0.25% on the contracted undisbursed loan amount

and other fees in accordance with the Decision on Fees for HBOR Services valid on the day of calculation

  • 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 500.00 kn.

8. Period and Manner of Loan Disbursement

  • Short-term loans:
    • Up to 3 months
    • One-off or successively, based on the documentation evidencing the utilisation of loan for earmarked purposes
  • Revolving loans:
    • Up to 12 months
    • On revolving principle, based on the documentation evidencing the utilisation of loan for earmarked purposes
  • Long-term loans:
    • Up to 12 months
    • One-off or successively, based on the documentation evidencing the utilisation of loan for earmarked purposes

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

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

  • Short-term loans:
    • Up to 12 months from the expiry of the disbursement period, provided that the total loan period (disbursement period and repayment period) shall not exceed the total of 12 months
  • Revolving loans:
    • Up to 12 months from the conclusion of the Loan Contract

In the case of the revolving of the loan, which depends on the assessment of creditworthiness of the borrower and available HBOR’s sources of finance, HBOR retains the right to change the currency, the interest rate and the fees of the revolved loan.

  • Long-term loans:
    • Up to 6 years, including a grace period of up to 2 years, depending on the purpose and creditworthiness of the borrower (for loans with a repayment period of 5 years and less than 5 years, it is possible to approve the maximum grace period of up to 1 year)

10. Manner of Repayment

  • Short-term loans:
    • One-off or, generally, in equal monthly or three-monthly instalments
  • Revolving loans:
    • Successively or one-off, not later than on the date of the contracted ultimate repayment deadline
  • Long-term loans:
    • 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 transaction and the borrower

13. List of 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