HBOR Working Capital for Rural Development
As a result of cooperation between the Ministry of Agriculture and HBOR, a new financial instrument called Working Capital for Rural Development has been launched providing the funding for liquidity needs at favourable terms and conditions for farmers, entities processing agricultural products and those operating in the forestry industry whose activities have been affected by the COVID-19 pandemic.

Up to 5-year repayment period

Loans will be approved by HBOR directly at an interest rate of 0.5 percent, and the borrowers will not be charged any fees usually charged when approving and disbursing loans or modifying loan terms and conditions.

Loan amounts can range from HRK 190 thousand to HRK 1.52 million. Loan funds will be granted for a period of up to 5 years (up to 12-month grace period included), or up to 3 years (up to 6-month grace period included) for loans amounting up to HRK 760 thousand. Required collateral includes debentures and blank debentures of borrowers and, if necessary, debentures and blank debentures of associated entities.

Applications submitted starting from 1 June 2020

Loan funds can be used for the financing of salaries, overhead costs and other main operating costs (the so-called stand-by mode), the procurement of raw materials and the settlement of obligations towards suppliers as well as other current operating costs. The funds cannot be used for the settling of existing loan obligations towards commercial banks or other financial institutions.

Loan applications can be submitted to HBOR starting from Monday, 1 June 2020.

The total volume of funds earmarked for these loans stands at HRK 130 million. This amount has been provided by way of reallocating a portion of the Investment Loans for Rural Development financial instrument to the Working Capital for Rural Development financial instrument. Loan applications will be received until 31 December 2020 or until all available funds have been disbursed.