The European Commission confirmed HBOR’s portfolio insurance scheme for liquidity loans with a lending potential of HRK 6 billion.


Coverage of up to 50 percent of the total approved loan with low premiums

In order to enable businesses affected by the COVID – 19 pandemic to obtain cover of up to 50 percent of the total approved loan for liquidity, and easier and faster loan approval with lower requirements for usual collateral, the consent of the European Commission had to be obtained in order to apply significantly reduced premiums on insurance policies and guarantees in comparison with the market premiums and fixed premiums for small and medium-sized enterprises as well as large enterprises for different maturities, but regardless of the rating of beneficiaries.


In other words, this programme is in line with the criteria of the Temporary Framework for State Aid Measures to Support the Economy in the Current COVID – 19 Pandemic, a specific legal framework for aid adopted by the European Commission to allow member states more flexible granting of aid for the economies affected by the crisis. Before the member states start to apply them, they are obliged to obtain a consent of the European Commission for such temporary aid programmes due to specific and more flexible terms and conditions of aid granting.


Beneficiaries of insurance

Direct beneficiaries of portfolio insurance (the insured) will be banks in the Republic of Croatia operating in accordance with the Act on Credit Institutions and HBOR as lender that will approve new liquidity loans to exporters and their suppliers.


HBOR’s portfolio insurance, as a guarantee for up to 50 percent of the total amount of approved loan, will be available for liquidity loans approved to exporters defined as entrepreneurs from all economic sectors, including the tourism sector, who generated 20 percent of their income from exports in the previous business year.


HBOR participates in the preparation of draft amendments to the regulation of the Government of the Republic of Croatia, by which this measure could soon be available also to indirect exporters, i.e. suppliers of exporters, who have been defined as entrepreneurs registered in the Republic of Croatia having generated at least 40 percent of their business revenues in the past financial year from sales to exporters in accordance with their latest official annual financial statements.