The repayment period for the Working Capital Program Measure COVID-19 has been extended from 3 years to 5 years. These loans are approved through 14 commercial banks under a risk-sharing model with an interest rate starting from 0 percent on HBOR’s share of the loan.
Due to the continued difficult business conditions for Croatian entrepreneurs, and to facilitate business operations and repayment of credit obligations, HBOR has extended the repayment period for the Working Capital Program Measure COVID-19 to 5 years, including the possibility of a grace period of up to 1 year.
Interest rate starting from 0 percent on HBOR’s share of the loan
In addition to the longer repayment period, the advantage of this program is also the interest rate starting from 0 percent on HBOR’s share of the loan for the first 3 years of repayment (the interest rate depends on the regulations regarding state aid). No processing fee is charged for HBOR’s share of the loan, nor is there a fee for reserving funds.
Loan users can be business entities from the private and public sectors that need to prove negative consequences caused by the COVID-19 epidemic (obtain a COVID score). The application for these funds can be submitted to one of the 14 banks with which HBOR has an established cooperation under this program. The minimum loan amount that can be requested from HBOR’s sources is 1 million kuna, while the second part of the loan is approved from the sources of the commercial bank. For loans greater than 37 million kuna, direct loan approval is possible.
Through 8 banks, lending is enabled with an interest rate 0.75 percentage points lower
Favorable liquidity funds from HBOR’s sources can also be requested through 8 banks with which HBOR concluded framework loan agreements in May. In this way, 1.2 billion kuna has been made available to entrepreneurs for new liquidity loans, which are approved with interest rates reduced by 0.75 percentage points compared to regular rates, thanks to HBOR’s sources. The minimum loan amount that can be requested is not limited, while the maximum is 35 million kuna.
Already 300 million kuna approved to entrepreneurs in the tourism sector
Small and medium-sized entrepreneurs from the tourism sector could submit a direct loan application to HBOR for working capital at an interest rate starting from 0 percent until June 5, 2020. By that date, more than 550 applications had been received, half of which have already been processed, and loans totaling nearly 300 million kuna have already been approved.
Working capital for rural development with an interest rate of 0.5 percent
Loans under the Working Capital Program for rural development in the amount of 190 thousand to 1.52 million kuna are approved directly by HBOR, without fees, at an interest rate of 0.5 percent and with promissory notes as the only instrument of security.
