29.01.2025.
The Croatian Bank for Reconstruction and Development (HBOR) has developed, in cooperation with the Ministry of Regional Development and EU Funds and the Ministry of the Economy, a new financial instrument: "Loans for Production Modernisation" intended for small and medium-sized enterprises operating in the processing industry sector.
The goal of the new programme is to promote modernisation, digitalisation and increased productivity of enterprises by offering favourable terms and conditions of finance, whereas its key feature is its composition that includes a combination of loans and grants. Capital discount, i.e. principal write-off of up to 50 per cent of the total loan amount, is realised upon the fulfilment of pre-defined criteria.
Loans will be granted without charging application processing fee, commitment fee and fee for loan pre-payment (write-off) as a result of capital discount realisation. Loan repayment period will be up to 14 years, up to 3-year grace period included. The lowest loan amount is EUR 100,000, whereas the highest loan amount can be up to EUR 3 million. Loans will be a combination of the funds from the European Regional Development Fund (ERDF) at an interest rate of 0 per cent per annum, fixed, and HBOR’s funds at a fixed interest rate determined separately for each individual loan based on risk assessment. A total of EUR 79.7 million will be available for placements to borrowers, of which 50% from the EFRD’s funds and 50% from HBOR’s funds.
"Also in this financial period, we continue to strongly support development projects through financial instruments, the total value of which exceeds EUR 1.2 billion. After providing, under the Urban Development Fund, EUR 180 million for development projects in cities and EUR 170 million for the development of sustainable tourism and the upgrade in the quality of tourism products and services, now we are supporting the modernisation of production and digitalisation of business processes in the processing industry with EUR 80 million. With this type of finance model, we contribute to the competitiveness of the Croatian industry and encourage new investments throughout Croatia," said Šime Erlić, Minister of Regional Development and EU Funds.
"So far, the Ministry of the Economy has awarded numerous grants to Croatian entrepreneurs for research, innovation, internationalisation, digital and green transition. This new financial instrument is worth highlighting as it enables companies to invest in the expansion of production capacity along with significant benefits for investments in the digital transformation of business. This instrument provides the possibility of writing off a part of the principal amount for achievements in digitalisation of business processes, automation, robotisation and other advanced solutions of Industry 4.0. In this way, up to a half of the loan amount can be converted into a grant with simplified finance rules," stressed Ante Šušnjar, Minister of the Economy.
"The combination of favourable finance terms and conditions and grants has proven to be an effective model of support for the key sectors of the economy, which is confirmed by the great interest of entrepreneurs in the two financial instruments we launched last year. In continuation of the success of that model, with this programme we want to enable entrepreneurs in the processing industry to further modernise their businesses and adapt to global standards, thus ensuring their long-term resilience and growth," said Hrvoje Čuvalo, President of the Management Board of HBOR.
The launch of this financial instrument further strengthens the efforts of HBOR and the relevant ministries in supporting the modernisation and digital transformation of the Croatian processing industry. Entrepreneurs are given an opportunity, through favourable finance terms and conditions, to realise the projects that contribute to the development of competitiveness and productivity, which directly strengthens Croatia's overall economic resilience.
The Croatian Bank for Reconstruction and Development (HBOR) has developed, in cooperation with the Ministry of Regional Development and EU Funds and the Ministry of the Economy, a new financial instrument: "Loans for Production Modernisation" intended for small and medium-sized enterprises operating in the processing industry sector.
The goal of the new programme is to promote modernisation, digitalisation and increased productivity of enterprises by offering favourable terms and conditions of finance, whereas its key feature is its composition that includes a combination of loans and grants. Capital discount, i.e. principal write-off of up to 50 per cent of the total loan amount, is realised upon the fulfilment of pre-defined criteria.
Loans will be granted without charging application processing fee, commitment fee and fee for loan pre-payment (write-off) as a result of capital discount realisation. Loan repayment period will be up to 14 years, up to 3-year grace period included. The lowest loan amount is EUR 100,000, whereas the highest loan amount can be up to EUR 3 million. Loans will be a combination of the funds from the European Regional Development Fund (ERDF) at an interest rate of 0 per cent per annum, fixed, and HBOR’s funds at a fixed interest rate determined separately for each individual loan based on risk assessment. A total of EUR 79.7 million will be available for placements to borrowers, of which 50% from the EFRD’s funds and 50% from HBOR’s funds.
"Also in this financial period, we continue to strongly support development projects through financial instruments, the total value of which exceeds EUR 1.2 billion. After providing, under the Urban Development Fund, EUR 180 million for development projects in cities and EUR 170 million for the development of sustainable tourism and the upgrade in the quality of tourism products and services, now we are supporting the modernisation of production and digitalisation of business processes in the processing industry with EUR 80 million. With this type of finance model, we contribute to the competitiveness of the Croatian industry and encourage new investments throughout Croatia," said Šime Erlić, Minister of Regional Development and EU Funds.
"So far, the Ministry of the Economy has awarded numerous grants to Croatian entrepreneurs for research, innovation, internationalisation, digital and green transition. This new financial instrument is worth highlighting as it enables companies to invest in the expansion of production capacity along with significant benefits for investments in the digital transformation of business. This instrument provides the possibility of writing off a part of the principal amount for achievements in digitalisation of business processes, automation, robotisation and other advanced solutions of Industry 4.0. In this way, up to a half of the loan amount can be converted into a grant with simplified finance rules," stressed Ante Šušnjar, Minister of the Economy.
"The combination of favourable finance terms and conditions and grants has proven to be an effective model of support for the key sectors of the economy, which is confirmed by the great interest of entrepreneurs in the two financial instruments we launched last year. In continuation of the success of that model, with this programme we want to enable entrepreneurs in the processing industry to further modernise their businesses and adapt to global standards, thus ensuring their long-term resilience and growth," said Hrvoje Čuvalo, President of the Management Board of HBOR.
The launch of this financial instrument further strengthens the efforts of HBOR and the relevant ministries in supporting the modernisation and digital transformation of the Croatian processing industry. Entrepreneurs are given an opportunity, through favourable finance terms and conditions, to realise the projects that contribute to the development of competitiveness and productivity, which directly strengthens Croatia's overall economic resilience.
This document has been prepared with the support of the European Union. The views expressed in the document do not reflect the official opinion of the European Union.