HBOR signed a loan agreement of 90 million euros with CEB

The Council of Europe Development Bank (CEB) has approved a loan of 90 million euros to the Croatian Bank for Reconstruction and Development (HBOR). The loan agreement was signed today by Rolf Wenzel, Governor of CEB, and Anton Kovačev, President of the Management Board of HBOR, with the attendance of Slavko Linić, Minister of Finance.

The loan funds are intended for financing projects of micro, small, and medium-sized enterprises, projects of local and regional self-government, and other public sector entities in the Republic of Croatia, representing the largest loan amount that CEB has approved to HBOR to date. HBOR received the loan under very favorable conditions – the indicative interest rate for the variable interest rate is from 0.95 percent to 1.1 percent, or from 2.04 to 2.53 percent for the fixed interest rate. The repayment terms for small and medium-sized enterprises are 12 years, including a 2-year grace period, and 15 years for the public sector. HBOR has been cooperating with CEB since 2001, and the previous cooperation has resulted in 422 supported projects of micro, small, and medium-sized enterprises and 25 public sector municipal infrastructure projects, totaling 158 million euros. The new loan will enable HBOR to continue financing Croatian entrepreneurs under favorable conditions regarding both maturity and interest rates.

“The favorable funds from CEB and other international financial institutions have allowed HBOR to extend the temporary measure of reduced interest rates that we introduced in 2012, which was supposed to be in effect until the end of June this year, until the end of 2013, thereby providing an additional incentive for new investments,” said Anton Kovačev, President of the Management Board of HBOR.
In addition to maintaining reduced interest rates for new investments in agriculture and fisheries, tourism, industry, energy efficiency, and environmental protection, HBOR has made amendments and supplements to certain loan programs. In the loan programs for Beginners, Women Entrepreneurs, and Small and Medium Enterprises, financing for investments in intangible assets is enabled. The amount of the loan intended for investment in working capital under the Beginners program has been increased from 15 to 30 percent, and in the same program, for loans up to 700 thousand kuna, 100 percent financing of the investment is allowed without including value-added tax. For securing loans up to 100 thousand kuna, which are secured by a guarantee from HAMAG Invest of up to 80 percent of the principal, HBOR will only accept promissory notes and bills of exchange, as well as a statement on the owner’s salary garnishment.