Tomislav Tolušić, Minister of Agriculture, Matilda Copić, Director of Paying Agency for Agriculture, Fisheries and Rural Development, Tamara Perko, President of the Management Board of Hrvatska banka za obnovu i razvitak (HBOR) and Vjeran Vrbanec, President of the Board of Directors of the Croatian Agency for SMEs, Innovations and Investment (HAMAG-BICRO) signed the agreements on financing the implementation of financial instruments. The signing ceremony was attended by the Prime Minister of the Republic of Croatia Andrej Plenković, Deputy Prime Minister of the Republic of Croatia and Minister of the Economy, Entrepreneurship and Crafts Martina Dalić and the Minister of Finance Zdravko Marić.


This is a new form of financial support through which favourable investment loans and guarantees will be offered for new investments and modernisation of existing capacities on the more favourable terms and conditions than those currently offered by the banking sector in the Croatian market.


HBOR is included in the implementation of the new financial instrument „Investment Loans for Rural Development“ in the total value of up to EUR 70 million that combines the proceeds of the European Fund for Rural Development and commercial banks’ proceeds in the proportion 50:50.


Part of the funds (50%) from the European Agricultural Fund for Rural Development at an interest rate of 0%

Part of the funds (50%) from the European Agricultural Fund for Rural Development will be placed without charging fees at an interest rate of 0%, whereas, for the other 50%, HBOR will issue a public invitation to commercial banks that will compete by interest rate and fee levels.


Eligible borrowers are family farms, crafts businesses in agriculture, companies and cooperatives.


“Loans will be available from the end of this year, and I invite all who are interested to start preparing their projects in the meantime in order to be able to apply for a loan as soon as this financial instrument becomes effective,” said Tamara Perko, President of the Management Board of HBOR.


Loans will be on-lent through commercial banks at a repayment period of up to 15 years and a possible grace period of up to 3 years or up to 5 years for the planting of perennial crops. Loans will be approved in the amounts of up to EUR 1 million for investing in tangible and intangible assets, working capital included (up to 30% of eligible costs or up to EUR 200 thousand). Minimum loan amount that can be approved under this programme equals EUR 50 thousand.


Guarantees and small loans for rural development (up to EUR 50 thousand) will be approved through HAMAG-BICRO from May or June this year already.