In order to mitigate the adverse impacts of COVID-19 (coronavirus) pandemic, HBOR will implement new measures aimed at maintaining the level of economic activity, keeping the liquidity of economic operators stable and, most importantly, preserving jobs.

Therefore, entrepreneurs will be able to introduce a moratorium on and reschedule their existing loan obligations towards HBOR and will be offered new liquidity loans at favourable terms and conditions in cooperation with commercial banks.

To facilitate the approval of liquidity loans at favourable terms and conditions in cooperation with commercial banks and to speed up the recovery of as many entrepreneurs as possible whose operations have been adversely affected by the COVID-19 (coronavirus), necessary guarantees in the form of portfolio insurance policies (guarantees) will be offered for loans intended for exporters and tourism industry.

In short, here is the description of the measures to be taken by HBOR:
Moratorium on existing obligations
As the first measure, HBOR will enable its clients, who have been granted a direct loan, to put a three-month moratorium on obligations falling due after 29 February 2020. Should the adverse impacts of the COVID–19 (coronavirus) pandemic on the economy last for a longer period of time, it will be possible to prolong the duration of moratorium. During moratorium, clients will not be obliged to make payments of principal, interest and fees and, after the expiry of moratorium, they will be able to repay their due obligations in 12 equal monthly instalments at no interest. Manner of repayment will be determined on a case-to-case basis for those clients whose loan final repayment periods end during the aforementioned period. The clients who have been granted a direct loan will be informed of moratorium implementation details by HBOR directly.

The borrowers, to whom loans under HBOR's loan programmes have been granted through commercial banks, have to submit their moratorium applications to the commercial banks through which loans have been on-lent to them. HBOR is willing to support any moratorium application submitted by clients to whom loans under HBOR's loan programmes have been approved through commercial banks or under risk-sharing models.

Rescheduling of loan obligations
Beneficiaries of HBOR loans will be provided rescheduling of their existing loan obligations and a grace period will be introduced in the loan principal repayment. Each client will individually negotiate rescheduling of its obligations according to its repayment potential.

This measure will be available to all beneficiaries of HBOR loans, regardless of whether the loan was granted directly or via commercial banks.

Clients will submit their applications for rescheduling of loans either to their commercial banks or HBOR, depending on the manner of approval of existing loans.

New loans for liquidity
HBOR will approve new liquidity loans to entrepreneurs in cooperation with commercial banks. Loans will be approved at a favourable interest rate, and the funds will be used to finance basic operating expenses (the so-called "idle mode").

Entrepreneurs will contact their commercial banks to apply for new liquidity loans and commercial banks will approve loans in cooperation with HBOR.

Insurance policies (guarantees) as collateral for loan approval
HBOR will, for and on behalf of the Republic of Croatia, approve portfolio insurance policies (guarantees) to commercial banks and to HBOR. Insurance policies (guarantees) will be used as collateral for new liquidity loans approved to exporters, and as a new measure, HBOR has also enabled exporters from the tourism sector to use this benefit. This manner of insurance will soon be able to be used by indirect exporters (suppliers of exporters).

Insurance policies (guarantees) will allow entrepreneurs to obtain new liquidity loans more easily and more quickly with less collateral requirements.

All details regarding the implementation of these measures, the necessary documentation and the manner of approval will be notified to entrepreneurs after the harmonisation of all technical requirements that will be implemented in the shortest term possible.

In cooperation with other domestic and foreign institutions, HBOR also works actively on adopting other measures.