The government has adopted measures to assist the economy that are intended to mitigate the effects of the crisis and preserve jobs. There are two models: one is lending, and the other is the entry of funds into the ownership structure of companies. A total of approximately 10 billion kuna is available.
– “We are introducing a more transparent model of support for the economy by investing private and state capital in companies that need help,” said Prime Minister Kosor, stating that the government is embarking on a decisive battle to assist every company that has a chance to survive. The first model is lending to companies in a project that will involve HBOR, HNB, the government, and commercial banks, consisting of two variants. In the first variant, entrepreneurs will be able to obtain classic loans from the HBOR program, where commercial banks will finance 70% and HBOR 30% of the amount, which will enable lower interest rates. The second variant of the lending program implies that the entire amount is covered by commercial banks, but the state will guarantee 25% to 50% of the amount with a guarantee fund that would be worth up to one billion kuna. Projects will be approved through an auction model once or twice a month. With this model, Kosor stated, investments and revenues are increased, while expenditures for the unemployed are reduced.
