From the funds of the National Recovery and Resilience Plan (NRRP), HBOR, for and on behalf of the Republic of Croatia, implements the Financial Instrument of Guarantee Fund for Loans to Mid-Caps and Large Enterprises within the framework and on the terms and conditions of this programme.
The objective of the Financial Instrument is to facilitate access to financing for Mid-Caps and large enterprises through the issuance of guarantees, encouraging in this way capital investments in new technologies and equipment, expansion of production and/or service capacities and other purposes necessary for strengthening competitiveness and green and digital transition.
The Programme implementation period (deadline for the signing of guarantee agreement) is until the available funds of the NRRP have been disbursed in full, but not later than 30 June 2026.
The total amount of guarantees of EUR 398,168,425 is based on the amount of funds of EUR 79,633,685 allocated on the basis of the National Recovery and Resilience Plan.
Under this Programme, HBOR will, together with the Financial Instrument of Interest Rate Subsidy Fund for Loans to Mid-Caps and Large Enterprises, allocate at least EUR 26,544,562 for investments in green transition projects, of which at least EUR 10,617,824 for projects aimed at reducing greenhouse gasses.
1. BENEFICIARIES OF GUARANTEES
Banks operating in accordance with the Credit Institutions Act (that have an operating license in the Republic of Croatia), the Croatian Bank for Reconstruction and Development as a lender and leasing companies operating in accordance with the Leasing Act.*
Beneficiaries of guarantees are obliged to transfer the advantages of guarantees to Final Beneficiaries to the greatest extent possible (e.g. lower interest rate, lower collateral requirements, greater volumes of funding etc.) and are obliged to state the transferred advantages in the loan contract and inform HBOR about them.
* The complete terms and conditions for defining eligible beneficiaries of guarantees are available in the Operational Programme for the Implementation of the Financial Instrument of Guarantee Fund for Mid-Caps and Large Enterprises (Operational Programme).
2. FINAL BENEFICIARIES
Mid-Caps and large enterprises*, including state-owned enterprises.
Entities belonging to the category of companies in difficulties cannot be loan beneficiaries.**
Loan beneficiaries, no later than before loan disbursement, must be established in the Republic of Croatia.
*Entrepreneurs that, according to the latest available official annual financial statements by their size, ownership, number of employees and other conditions do not belong to the category of micro, small or medium entrepreneurs in accordance with the EC Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises.
**The complete terms and conditions for defining eligible final beneficiaries are available in the Operational Programme.
3. PURPOSE OF LOANS
NRRP funds are intended for financing investments in the area of the Republic of Croatia in green transition and/or digital transition and/or strengthening competitiveness and resilience.
Special target groups are:
- Investment in special areas
- Investments in green transition projects
- Investments in digital transition projects
- Investments in projects based on research, development and innovations or investment in research, development and innovations.
Guarantee cannot be issued for loans intended for investments in:
- Fixed assets (tangible and intangible assets) aiming at business start-up, modernisation of business, introduction of new technologies, increase in capacities (including tourist capacities), development and introduction of new products and services, digitisation of business, investment in environmentally acceptable production processes and resources efficiency, research, development etc.;
- Working capital necessary for the implementation of investments and growth of final beneficiaries: up to 30% of the contracted loan amount.
Investments must be in compliance with the Do No Significant Harm principle.*
- VAT financing,
- Financing of Ineligible activities*,
- Refinancing of existing loans.
* Characteristics of investments in green transition, digital transition and strengthening of competitiveness and resilience, Criteria and examples of fulfilment of Do No Significant Harm criteria and Ineligible activities are available in the Operational Programme.
4. AMOUNT OF LOAN
Loan amount is determined by the Guarantee Beneficiary based on the Final Beneficiary’s application, and depends on the specific features and creditworthiness of the Final Beneficiary, purpose and structure of investment and state aid regulations.
Loans covered by a guarantee can amount up to 85% of the estimated investment value, VAT not included, i.e. even less, depending on rules regarding the state aid.
Guarantee amount above EUR 7,963,368 is an exception and will be approved only in case of an investment loan for Special target groups or if HBOR estimates that the mentioned investment is of strategic importance for the economy of the Republic of Croatia.
5. CURRENCY OF LOAN
6. VOLUME AND PERCENTAGE OF GUARANTEE
The agreed percentage of unpaid loan principal is guaranteed by the guarantee.
The maximum guarantee percentage for Special target groups is 80%, whereas for all other purposes, the maximum guarantee percentage is up to 70%.
7. LOAN DISBURSEMENT AND REPAYMENT PERIODS
Total loan period (from the date of conclusion of the loan contract until the date of maturity of the last instalment/annuity of loan) can be up to 20 years.
The disbursement period is determined by the Guarantee Beneficiary, and it depends on the purpose and the dynamics of investment.
The repayment period is determined by the Guarantee Beneficiary depending on the purpose and structure of investment and taking into account the expected projections of the Final Beneficiary’s operations. The repayment period can be up to 17 years, including grace period, for investments in tourism and for investments of special target groups, and 14 years in all other activities, including grace period.
8. INTEREST RATE ON LOAN
Interest rate is determined by the Guarantee Beneficiary, where the Guarantee Beneficiary can transfer the guarantee advantages to the Final Beneficiary by means of interest rate reduction.
Interest rate can be subsidised in compliance with HBOR’s Operational Programme for the Implementation of Financial Instrument of Interest Rate Subsidy Fund for Loans to Mid-Caps and Large Enterprises under the NRRP.
9. GUARANTEE FEE
The Guarantee fee is determined by HBOR as a market-based fee calculated in accordance with HBOR’s internal documents.
Pursuant to the state aid rules, HBOR can waive the collection of a part or the entire Guarantee fee. The uncollected amount of the Guarantee fee represents the state aid approved to the Final Beneficiary.
10. GUARANTEE APPLICATION PROCESSING FEE
It is determined by HBOR as a market-based fee calculated in accordance with HBOR’s internal documents. It is charged by HBOR, one-off, on the occasion of guarantee agreement execution.
Collateral is determined by the Guarantee Beneficiary, where it is obliged to contract at least the debentures of the Final Beneficiary, the Guarantors, the Guarantors-Payers and the Co-Debtors, and HBOR may request from the Guarantee Beneficiary to provide additional debentures of the Final Beneficiary, the Guarantors, the Guarantors-Payers and the Co-Debtors, and the Guarantee Beneficiary is obliged to contract a lien on the property purchased/constructed from the proceeds of the Loan with a property insurance policy against the usual risks endorsed in favour of the Guarantee Beneficiary.
The Guarantee Beneficiary is obliged to obtain a debenture of the Final Beneficiary issued in favour of HBOR in the amount of the Guarantee Fee subsidy (if the Guarantee Fee is subsidised) plus statutory penalty interest, which will serve as collateral for the collection of the amount of the Guarantee Fee subsidy in case of Irregularities determined by HBOR.
12. RELATED DOCUMENTS / ENCLOSURES
Operational Programme for the implementation of the Financial Instrument of the Guarantee Fund for Loans to Mid-Caps and Large Enterprises under the NRRP
Draft guarantee agreement
Draft recovery contract
NRRP Operational Programme for Interest Subsidy on Loans to Mid-Caps and Large Enterprises
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DOCUMENTATION FOR THE SUBMISSION OF GUARANTEE APPLICATION
Application for Guarantee FI Guarantee Fund for Mid-Caps and Large Enterprises under the NRRP
Enclosure 1 – Tables of Final Beneficiary
Enclosure 2 – Statement on Aid
Enclosure 3 – Questionnaire for Legal Entities
Enclosure 4 – Client Eligibility Statement
Enclosure 5 – Data on Client’s Beneficial Owners
Enclosure 5 – TABLE Schedule – Data on Client’s Beneficial Owners
Enclosure 6 – Statement on Connected Clients
Enclosure 7 – SELF-ASSESSMENT QUESTIONNAIRE
Enclosure 7 – SCHEDULE 1 to SELF-ASSESSMENT QUESTIONNAIRE
Enclosure 7 – SCHEDULE 2 TO SELF-ASSESSMENT QUESTIONNAIRE
Enclosure 8 – Questionnaire for Politically Exposed Persons
Enclosure 9 – Statement on the Origin of Assets and Funds
Enclosure 10 – Specification with Interest Subsidy Application