In order to encourage investments of local and regional government units (ULRGs), institutions and agencies majority-owned by them and to encourage the use of available EU funds, HBOR lowered interest rates by programmes
- 1.1 % – for direct loans to ULRGs, institutions and agencies majority-owned by them from special areas of the Republic of Croatia,
- 1.2 % – for direct loans to ULRGs, institutions and agencies majority-owned by them from other areas of the Republic of Croatia,
- 1 % – for investing in recovery from the consequences of earthquake and economic development of Sisak-Moslavina County with no application fee or fee for change of the loan terms and conditions.
- 1.2 % – for direct loans to ULRGs, institutions and agencies majority-owned by them.
Reduced loan processing fee and no commitment fee
Under both programmes for ULRGs, agencies and institutions owned by them, the loan processing fee has been reduced to 0.2 % and no commitment fee is charged.
Repayment period of up to 17 years
Depending on the purpose and structure of the investment, loans under these programmes are approved for a period of up to 15 years, including a possible grace period of up to 5 years, and if the investment study indicates the need for longer maturity, it is possible to grant loans for a period of up to 17 years, including a possible grace period of up to 4 years.
Financing up to 100 % of the estimated investment value, issuing of advance payment guarantee
HBOR may finance up to 100 % of the estimated investment value, including the corresponding VAT, and loans for projects co-financed by the EU funds, it is possible to issue an advance payment guarantee.
In addition to regular programmes, HBOR also approves ESIF Loans for Energy Efficiency in Public Sector Buildings and ESIF Loans for Public Lighting on very favourable terms – at an interest rate from 0.1 % and without usual fees charged for loan implementation.
Development of a technical assistance system
HBOR also develops a system of technical assistance to ULRGs to strengthen their capacities and enable them to be better prepared for the efficient absorption of available EU funds.