Programme for the Award of State Aid to Support the Tourism Sector and Sports in the Current COVID-19 Outbreak - Guarantees
Guarantee applications received by 31 December 2021.
Issuing of state guarantees for and on behalf of the Republic of Croatia on new liquidity loans and/or investment loans for the tourist season preparation to address the problems caused by the crisis as a result of the COVID-19 outbreak. The guarantee covers the maximum of 90% or 100% of a single loan principal, depending on measure.
PURPOSE
Issuing of state guarantees for and on behalf of the Republic of Croatia on new liquidity loans and/or investment loans for the tourist season preparation to address the problems caused by the crisis as a result of the COVID-19 outbreak.implementation
HBOR for large undertakings, and HAMAG-BICRO for SMEs in cooperation with the Ministry of the Tourism and Sports (MTS). The terms and conditions stated below relate to the Programme implemented by HBOR.total volume of guarantees
HRK 1,500,000,000 (HBOR and HAMAG-BICRO)GUARANTEE COVERAGE
The guarantee shall cover up to 90% or 100% of the underlying loan principal, depending on the measure. Losses are sustained proportionally according to the amount of guarantee coverage and on the same terms and conditions (pari passu) by the Lender and MTS.TARGET GROUPS/BORROWERS
Large undertakings active in the tourism and sports sectors prescribed by the Programme that are faced with difficulties in operations as a consequence of the crisis caused by the COVID-19 outbreak.LENDERS /BENEFICIARIES OF GUARANTEES
Banks in the Republic of Croatia that operate in accordance with the Credit Institutions Act and HBOR.DURATION OF THE PROGRAMME
Until 31 December 2021 (period until which guarantees must be approved, agreed and issued).LOAN COLLATERALS
For the purpose of securing the receivables under the Loan Contract, lenders are obliged to obtain from the Borrower one debenture to the guarantee amount increased by accompanying interest, fees and costs in favour of the Republic of Croatia, the Minister of Tourism and Sports, the photocopy of which HBOR shall submit together with the photocopy of the Loan Contract, and the original together with the Call for Guarantee Payment.In the event of payment under the guarantee, in the recovery of receivables under the loan contract, inflows from all collaterals arranged under the loan contract will be shared between the Republic of Croatia and the Lender pro rata in accordance with the level of guarantee coverage (pro rata, for the Measure from section 3.2. of the Temporary framework, maximum 90:10, or 100:0 for the Measure from section 3.1. of the Temporary framework).
GUARANTEE ISSUANCE PROCESS
- The Borrower submits to the Lender an application for approval of a loan with the guarantee under this Programme
- The Lender submits to HBOR the Decision on loan approval, the guarantee application and the prescribed documentation
- Expert teams of HBOR process the guarantee application
- HBOR and MTS make a decision on guarantee
- HBOR informs the Lender about the guarantee decision
- In case of making of a favourable decision on guarantee:
- The Borrower concludes the loan contract with the Lender, provides collaterals as security for loan repayment and submits to the Lender a debenture in favour of the Republic of Croatia, the Minister of Tourism and Sports
- The Lender submits the photocopy of the loan contract and the photocopy of the debenture in favour of the Republic of Croatia, the Ministry of Tourism and Sports to HBOR
- HBOR concludes the guarantee agreement with the Lender and the Borrower
- An invoice for the guarantee premium is delivered to the Borrower by HBOR. The guarantee premium is charged in accordance with the Programme
- The Borrower may pay the guarantee premium from the first disbursement of the loan, otherwise the guarantee shall take effect after the Borrower has paid the premium
- HBOR notifies the Lender that the guarantee premium has been paid by the Borrower
- The Lender provides the loan funds.
RECOVERY UNDER THE GUARANTEE
The recovery is managed by the Lender for the entire claim (its own claim and the claim of the Republic of Croatia) that will be shared between the Republic of Croatia and the Lender pr rata in accordance with the level of guarantee coverage (pro rata, for the Measure from section 3.2. of the Temporary framework maximum 90:10, or 100:0 for the Measure from section 3.1. of the Temporary framework).SPECIAL FEATURES OF EACH OF THE PROGRAMME MEASURES
| Measure from section "3.1. Limited amounts of aid“ | Measure from section "3.2. Aid in the form of guarantees on loans“ | |
|---|---|---|
| Total amount of guarantees (HBOR and HAMAG) | HRK 1,000,000,000.00 | HRK 500,000,000.00 |
| Maximum amount of guarantee per Borrower | EUR 1,800,000.00 | If aid in the form of a guarantee on loans cannot be granted pursuant to section 3.1. of the Temporary framework or if the total nominal value exceeds the upper limit of EUR 1,800,000.00 EUR, guarantee may be granted under section 3.2. of the Temporary framework. For loans in HRK, the middle exchange rate of the Croatian National Bank on the day of making a decision on loan approval shall be applied for the calculation. The maximum loan amount per Borrower shall not exceed: i. double annual expenses of the Borrower for employee wages (including social contributions as well as the cost of personnel working on the undertaking’s location, but formally in the payroll of sub-contractors) for 2019, or for the last year available. In the case of undertakings established on or after 1 January 2019 or after that date, the maximum loan amount must not exceed the estimated annual wage bill for the first two years of operations, or ii. 25% of the Borrower’s total turnover in 2019, or iii. as an exception, in case of Borrowers that are particularly affected by the shortage of liquidity (that experienced a decline of at least 50% of one or more criteria that prove the liquidity shortage and losses in operations caused by economic consequences of COVID-19, and that are prescribed by this Programme), the total loan amount may exceed the amount referred to in sub-item i. by not more than 10%, and the amount referred to in sub-item ii. by not more than 20% to cover the liquidity needs in the next 12 months for large undertakings. The Borrower must prove the liquidity need within the framework of the liquidity plan that it is obliged to submit with the guarantee application. This liquidity plan can relate to both working capital and investment costs for the preparation of the tourist season. In any case, the loan must not exceed the amount of HRK 50,000,000.00. |
| Loan maturity | Minimum 1 year, maximum 5 years, from the loan contract execution date to the final loan repayment period. | Maximum 6 years, from the loan contract execution date to the final loan repayment period. |
| Guarantee fee | 0.25% on nominal (net) amount of guarantee, regardless of the guarantee duration. | On nominal (net) amount of guarantee, 50 basis points in the first year of guarantee duration, 100 basis points from the second to the third year, 200 basis points from the fourth to the sixth year. Fee is calculated on the net guarantee balance in accordance with the repayment schedule based on a 30/360 days method pursuant to the indicative loan repayment schedule. |