Hypo Alpe-Adria-Bank d.d. and the Croatian Bank for Reconstruction and Development (HBOR) have signed a Business Cooperation Agreement for the ‘Microcrediting’ project, which pertains to a loan totaling 3.1 million euros intended for micro, small, and medium-sized enterprises as well as individuals and legal entities that meet the criteria of the European Union.
The mentioned funds are part of the agreement between HBOR and KfW Bankengruppe for the year 2010, aimed at supporting the development of small and medium-sized enterprises with a total amount of 20 million euros. According to the new agreement, loans are approved for financing working capital up to 30,000.00 euros, while investment loans are approved up to an amount of 250,000 euros and include financing of fixed assets (up to 100 percent) and working capital (up to 30 percent). The interest rate for the end user is based on the 6M EURIBOR, increased by a margin ranging from 5 to 5.5 percent for microcredits for financing working capital, and from 4 to 5 percent for investment loans. The signing of the ‘Microcrediting’ agreement is a continuation of the good cooperation from 2008 and 2009. Namely, from the total limit signed between HBOR and KfW Bankengruppe amounting to 15 million EUR, the limit for Hypo Bank was around 6 million euros, which was fully utilized for financing 47 investment projects and fulfilling 93 requests for working capital. The credit line has been exceptionally well received by clients due to attractive interest rates and the speed of resolving credit requests through framework loans with HBOR, so we expect equally good results with the continuation of business cooperation. (M.N.)
