HBOR Accepted Offers from Five Banks for Model A

The Croatian Bank for Reconstruction and Development (HBOR) has accepted all five incoming offers from banks at the fifth auction for the allocation of quotas for Model A, with the weighted interest rate for end users, entrepreneurs, ranging from 4.85 percent to 5.87 percent, HBOR reported today.

The fifth auction for Model A, i.e., the allocation of HBOR credit quotas for the implementation of the Working Capital Financing Program, was held on June 30, with HBOR offering 80 million kuna, and only five offers were received totaling 27.24 million kuna. HBOR offered the smallest amount so far for the fifth auction under Model A, as in most previous auctions (the first, second, and fourth) it went with a quota of 200 million kuna each, and in the third with a total of 250 million kuna. HBOR accepted offers from Privredna banka Zagreb (PBZ), Istarska kreditna banka, Croatia banka, Societe Generale – Splitska banka, and Jadranska banka at the fifth auction. The lowest margin, and thus the interest rate for end users, was offered by PBZ and Istarska kreditna banka.

PBZ was granted the requested quota amount of 16 million kuna, and when the 60 percent share of the bank itself, amounting to 24 million kuna, is added to this part of the loan from HBOR’s funds, PBZ’s credit potential from this auction amounts to 40 million kuna, and for these loans, the weighted interest rate for end users is 4.85 percent. Istarska kreditna banka was granted the requested quota amount of 4 million kuna, and when six million kuna from the bank’s own funds is added, the total credit potential after this auction amounts to 10 million kuna, and the weighted interest rate for end users is 4.85 percent. The remaining three banks were granted the entire requested amount of the credit quota – Croatia banka 240 thousand kuna, Societe Generale – Splitska banka two million kuna, and Jadranska banka five million kuna. The interest rates for entrepreneurs who will receive loans under the working capital financing program from these banks will be 4.91 percent, 5.03 percent, and 5.87 percent. (H)