The Programme of Subsidising the Insurance Premium – COVID-19 measure of the Republic of Croatia to Support the Economy PSP/01-2021 (hereinafter: the Measure) is implemented by the Croatian Bank for Reconstruction and Development (hereinafter: the Insurer) within the framework of export credit insurance transactions for and on behalf of the Republic of Croatia, as one of the measures to support the Croatian economy in view of the difficulties caused by the COVID-19 outbreak. The measure is implemented pursuant to chapter 3.1. of the Communication from the Commission – Temporary Framework for State aid measure to support the economy in the current COVID-a 19 outbreak.
Subsidising the premium at the expense of the Exporter will enable Exporters, as beneficiaries of liquidity loans insured through the following insurance programmes implemented by the Insurer, not to have or to reduce the cost of insurance premium if they meet the conditions for subsidising the Premium. The aim is to make the insurance of loans granted to Exporters as favourable as possible in order to avoid an increase in the financial costs of Exporters and further disruption of their liquidity.
Subsidies may be granted for Premiums under the following insurance programmes:
- Programme for the Insurance of Exporters’ Liquidity Loan Portfolio – COVID-19 measure of the Republic of Croatia to support the economy (hereinafter: Programme for the Insurance of Exporters’ Liquidity Loan Portfolio)
- Programme for Individual Insurance of Exporters’ Liquidity Loans – COVID-19 measure of the Republic of Croatia to support the economy (hereinafter: Programme for Individual Insurance of Exporters’ Liquidity Loans).
The measure will be implemented in such a way that the Insurer waives the collection of the Premium if the Exporter meets the conditions for subsidising the Premium.
For loans insured under the Programme for the Insurance of Exporters’ Liquidity Loan Portfolio for which the Insured has already collected the Premium from the Exporter, the Insurer will also enable subsidising of the Premium in the manner that, upon interest expressed by the Exporter for subsidising the Premium and, after having established that the Exporter has met the conditions for subsidising of the Premium, the Insurer will make a refund to the Exporter of the Premium already paid.
In cases where due to the previous use of state aid referred to in chapter 3.1. of the Communication from the Commission it is not possible to subsidise the entire amount of the Premium, it is possible to subsidise part of the Premium amount. The measure can be used once for an individual loan. The Measure cannot be used for the Premium for the change of the loan repayment period.