Hypo Bank Secures 30 Million Kuna for Entrepreneurs

Hypo Alpe-Adria-Bank has signed a Business Cooperation Agreement with the Croatian Bank for Reconstruction and Development (HBOR) under the Risk Sharing Model – Small and Medium Enterprises (SME), it was reported today by Hypo Bank.

From the total quota approved by HBOR to commercial banks under the Risk Sharing Model – SME, Hypo Alpe-Adria-Bank has been allocated a quota of 30 million kuna.

The loans are intended for investment projects that contribute to the employment of a larger number of workers, increase in exports, achievement of higher added value, and strengthening competitiveness in the domestic and international markets.

Financing of investment projects under the risk-sharing model is conducted within and under the conditions of existing HBOR lending programs – Small and Medium Enterprises, IPARD, Start-ups, Innovations, Islands, Agriculture and Balanced Development, Tourism, Economy, Environmental Protection, Infrastructure.

The implementation of financing for investment projects of small and medium enterprises under the Risk Sharing Model will last until December 31, 2013, or until the available funds are exhausted.

According to this model, Hypo Bank will finance at least 60 percent of the total loan amount from HBOR’s funds, which in turn finances up to 40 percent of the total loan amount directly to the loan user, with an unconditional guarantee from HAMAG INVEST, on first call and without objection in the amount of 80 percent of the principal of the direct loan from HBOR, it is stated in the announcement.

The goal of the cooperation is to modernize operations, introduce new technologies, increase production capacities, introduce new products, increase accommodation capacities in tourism, and promote the development of renewable energy projects and energy efficiency.

HBOR provides total loan funds under the Risk Sharing Model – SME and will assume the risk of loan repayment proportionate to the share related to the financing of the investment directly by HBOR.

Hypo Bank will propose projects for financing to HBOR and carry out the usual operational activities in the process of approval, contracting, utilization, and collection of loans.

Hypo Alpe-Adria-Bank has participated this year in the implementation of 25 HBOR credit programs, of which four are new, and under the Economic Recovery Credit Program, a sort of continuation of the former Models A and A+, it has approved a total of 100 million kuna for 19 clients, as stated in the announcement from Hypo Bank.