Applications will be received until 13 May 2022.
- Private sector business entities - companies, crafts businesses, sole traders, family farms, cooperatives and institutions.
- Public sector business entities - companies and other entities (agencies and institutions, etc.) owned or majority-owned by the units of local or regional government and/or the Republic of Croatia.
- COVID score 1 is negative (-100), and/or
- Risk classification based on the data received by FINA from the Croatian National Bank is "3 – not fulfilling obligations duly", and/or
- Loans cannot be granted to clients against which bankruptcy or pre-bankruptcy settlement proceedings have been initiated.
Purpose of Loans
- Financing of current business operations (e.g. purchase of raw materials, production materials, semi-products, small inventory, settlement of obligations towards suppliers, labour costs, general current operating expenses);
- Settlement of short-term obligations towards the state and settlement of other short-term obligations, excluding the repayment of debt* to the owner, related entities and other third persons, as well as settlement of loan obligations towards commercial banks and other financial institutions;
- Settlement of due short-term obligations towards banks and other financial institutions in accordance with the repayment schedules valid at the moment of entering into a loan contract under this Measure, but to the maximum of 35% of total loan (relates to liabilities that become due regularly during loan disbursement period or have become due regularly before the execution of loan contract under this Measure, refinancing and premature repayment of an existing debt is excluded).
Manner of Implementation
- In cooperation with commercial banks under the risk-sharing model – application and related documentation shall be submitted to the commercial bank (see item 13: List of Commercial Banks Co-operating with HBOR on the Loan Programme).
- Direct lending is possible for loans in the amount of HRK 1.5 million and more, or exceeding HRK 37 million*, respectively (except family farms that are not within the VAT system and associations) – application and related documentation shall be submitted to HBOR.
Loan AmountMinimum amount of individual loan:
- Under the risk-sharing model with commercial bank: HBOR’s share in the loan may generally not be lower than HRK 1,000,000.00
- Direct HBOR loans:
- for borrowers generating a certain share of income from exports* or from tourism activities**: HRK 1,500,000.00 and more
- for other borrowers: above HRK 37,000,000.00
a) Twice the amount of annual salary expenditures of final beneficiary (including social security contributions and expenditures relating to the employees at the company location but formally on the payroll of subcontractor) for 2019 or for the last year available. As for final beneficiaries incorporated on 1 January 2019 or after that date, maximum loan amount shall not exceed the assessed annual salary expenditures for the first two years of operations; or
b) 25% of total business income/revenues in 2019; or
c) With an appropriate explanation and based on a statement of final beneficiary on its liquidity needs, the amount of loan can be increased to cover the liquidity needs during the period of 18 months from the moment of approval in case of SMEs and during the period of 12 months from the moment of approval in case of large enterprises.This method of determining maximum loan amount does not apply to loans in HRK equivalent value up to EUR 2.3 million or loans approved pursuant to section 3.1 of Temporary Framework.
*Borrowers: - having generated at least 10% of their operating income from exports in the last business year for which official financial statements are available (exporters), or - having generated at least 10% of their operating income from exports with one or several exporters referred to in the item above in the last business year for which official financial statements are available (exporter’s suppliers).
**Borrowers that generate income from tourism activities are the following business entities: - the entities to which the Central Bureau of Statistics has assigned one of the following National Classification of Activities codes: 50.10 – Sea and coastal water passenger transport, 55.10 – Hotels and similar accommodation, 55.20 – Holiday and other short stay accommodation services, 55.30 – Camping ground, recreational and vacation camp services, 55.90 – Other accommodation services, 56.10 – Restaurant and mobile food serving services, 56.21 – Event catering services, 56.29 – Other food service activities, 79.11 – Travel agency activities, 79.12 – Tour operator activities, 77.34 – Renting and leasing of water transport equipment, 93.21 Activities of amusement parks and theme parks, 93.29 Other amusement and recreation activities, - or the entities that can prove that more than 30% of their income/revenues are generated from the activities stated in the previous indent.
***Temporary Framework for State aid measures to support the economy in the current pandemic of COVID-19 (OJ C91I, 20.3.2020) and any amendments thereto; section 3.2, point 24.a and section 3.3, point 26.a.
Loan CurrencyDepending on HBOR's capacities:
- HRK indexed to EUR
Interest RateFor direct loans amounting to HRK 1.5 million and above and for loans under the risk-sharing model (for HBOR's share in the loan):
- During the disbursement period and for the first three years of loan repayment: from 0.00% p.a. fixed, depending on the regulations on the award of state aid and/or de minimis aid and the cost of available sources of funding
- For the 4th and 5th year of loan repayment: from 1.50% p.a., fixed or from 2.00% p.a., fixed, depending on HBOR’s assessment of the borrower’s creditworthiness, the regulations on the award of state aid and/or de minimis aid and the cost of available sources of funding*.
HBOR reserves the right to determine the level of interest rate different from the one specified in the programme for each individual loan amounting to HRK 50 million or more (i.e. equivalent value in another currency).
- Fees not charged (on HBOR's loan share):
- loan application fee
- commitment fee
Period and Manner of Loan Disbursement
- Up to 12 months
- One-off or successively, based on the documentation evidencing the utilisation of loan for prescribed purposes
- Up to 5 years, including a grace period of up to 1 year
Manner of Repayment
- Generally, in equal monthly, three-monthly or semi-annual instalments
- Lending under the risk-sharing model: collateral is determined by commercial bank and HBOR
- Direct lending: HBOR agrees the collateral with the borrower in accordance with HBOR’s internal documents (e.g. bills of exchange, debentures, pledge of property with insurance policy for the property endorsed in favour of HBOR, pledge of business interests, bank guarantees, EIF guarantees under the EGF, guarantees of HAMAG-BICRO and other security instruments customary in banking operations), and the risk assessment of transaction and borrower
Related Documentation, SchedulesGeneral Eligibility Criteria
List of Documentation and Commercial Banks
Decision on General Terms and Conditions of HBOR Lending