HBOR lowers interest rates

The Croatian Bank for Reconstruction and Development (HBOR) has decided to lower interest rates from three regular credit programs, following the successful utilization of funds from two financial instruments under the National Recovery and Resilience Plan (NPOO), HBOR announced on Monday.

As of the end of August this year, HBOR has successfully utilized all available funds within two key financial instruments from the NPOO: direct loans for investments in special segments of small and medium-sized enterprises (SMEs) and interest subsidies on loans for public sector entities.

HBOR has lowered interest rates in several of its regular programs.

Thus, the interest rate in the program for Youth, Women, Startups, and other special segments will now be 2% per annum (fixed), instead of the previous 4%. The maximum loan amount has been increased to €400,000 from the previous €300,000. The program has been expanded to all micro, small, and medium-sized enterprises investing in special areas of Croatia, as well as to entrepreneurs investing in the commercialization of research, development, and innovation (RDI) projects.

In the Public Sector Investment program, which relates to local, regional, and county self-government units (JLP(R)S), companies, institutions, and agencies in their majority ownership, as well as other public sector entities with a 100% guarantee from the Republic of Croatia and/or JLP(R)S, the interest rate will now be 2.5% per annum (fixed) instead of 3.2%, while for loan users belonging to special areas of Croatia, it will be 2.4% (fixed) per annum instead of the previous 3.1%.

Changes to the EU Projects program relate to loans intended for the public sector, i.e., for JLP(R)S, companies, institutions, and agencies in their majority ownership, as well as for loans to other public sector entities that are approved with a 100% guarantee from the Republic of Croatia and/or JLP(R)S. In this case, for directly approved loans, the interest rate will now be 2.5% per annum (fixed), instead of the previous 3.2%.

All new conditions apply to already received applications, as well as to those that will be received from September 1, 2024. More detailed information about the changes in credit programs is available on the official HBOR website.

– Although we can no longer offer the same financing conditions as under the NPOO, we have found a way to reduce interest rates in our most attractive programs to maintain favorable conditions for our clients – said HBOR CEO Hrvoje Čuvalo.