Easier Access for SMEs to Working Capital for Exports

HBOR signed Agreement on Insurance of Exporters' Working Capital Loan Portfolio with the following commercial banks: Banka Kovanica d.d., Erste&Steiermärkische Bank d.d., Hrvatska poštanska banka d.d. and Podravska banka d.d. The Programme for the Insurance of Exporters' Working Capital Loan Portfolio shall be implemented in cooperation with these commercial banks as the insured parties for the purpose of facilitating access to working capital for SMEs.

Faster commitment of working capital loans for exports

In accordance with the eligibility criteria and insurance costs agreed in advance, the banks shall decide on their own on the loans to be included in the loan portfolio, for which HBOR will provide cover of 80 percent of principal and ordinary interest. This means that HBOR shall assume a large portion of risk of loan non-repayment. The Programme shall enable faster, simpler and safer committing of loans without additional administrative burden for every single loan.

HBOR assumes risk of non-payment

The insured portfolio under this Programme can include loans committed to entrepreneurs who have fewer than 250 employees, who have generated up to HRK 50 million in annual operating revenues in the past business year and who have been granted a loan of up to HRK 1 milion. "So far, we have been offering insurance of individual loans for pre-export finance and have thus provided cover for loans in excess of HRK 2.2 billion. However, the insured loans have been mostly intended for large enterprises, whereas the new Programme is targeted at smaller exporters, i.e. at those whose exports have been growing or who wish to increase their exports. The new Programme is a continuation of our efforts to encourage entrepreneurs to export and tap new markets by assuming the risk of non-payment. In this way, HBOR has become one of the few export-credit agencies in the world who develop special products for smaller entrepreneurs also in the form of portfolio insurance policies,"  said Ms Tamara Perko, President of HBOR's Management Board. The total value of the Agreement signed today stands at HRK 77 million, and it is expected that other banks will join the implementation of the Agreement soon.

Entrepreneurs recognise benefits of insuring receivables

HBOR performs export-credit insurance activities for and on behalf of the Republic of Croatia and has issued insurance policies for more than 9 thousand projects, i.e. it has provided cover for export turnover of more than HRK 28 billion. Besides, HBOR' daughter company (Hrvatsko kreditno osiguranje, Croatian Credit Insurance) is a company specialised in insuring short-term receivables related to the sale of goods and services abroad and in Croatia. Entrepreneurs have been increasingly recognising the benefits of using these services for insuring their receivables and protecting their liquidity.