Interest Rates as Low as 0% and Insurance of 50% of Loan Amount

HBOR Interest Rates as Low as 0% and Insurance of 50% of Loan Amount

Entrepreneurs have access also to favourable HBOR's funds for financing liquidity that are approved in cooperation with commercial banks or directly to entrepreneurs in separate branches of the economy.

Half of the loan at a 0 percent interest rate or at an interest rate reduced by 0.75 pp

Entrepreneurs can apply for working capital loans via banks under the risk-sharing model with banks (loan programmes: Working Capital COVID-19 Measure and Working Capital for Wood Processing and Furniture Production) and through framework loans to banks. Funds under the risk-sharing model are approved with an interest rate from 0% on HBOR’s half of the loan, and liquidity loans on the basis of framework loans to banks with an interest rate lower by 0.75 p. p. than the regular one.

Approved already more than HRK 250 million for working capital in tourism industry

Loans under the programme Working Capital for Rural Development are approved by HBOR directly as well as loans for entrepreneurs in the tourism industry for which applications were received by 5 June 2020. By that date, HBOR received a total of 556 applications, half of which have already been processed, and loans in the total amount of more than HRK 250 million have already been approved.

Insurance of 50% of principal and interest amount

Besides favourable loans, HBOR has launched a new loan portfolio insurance programme for exporters' liquidity. This programme facilitates and accelerates the granting of new funds for maintaining the liquidity of exporters and indirect exporters as HBOR insures 50% of the amount of principal and interest of approved loans included by the banks into the portfolio.

A brief overview of COVID-19 measures

Programme	Loan Potential, HRK millions	Benefits	Launched	Implementation	Status
Moratorium on and Rescheduling of Loans		Moratorium duration up to 16 months	27.3.2020	Direct lending and on-lending via banks	Active
Working Capital COVID-19	1,500	Interest rate from 0% on HBOR’s share	30.3.2020	On-lending via 14 banks*	Active
Working Capital for Wood Processing and Furniture Production	220	Interest rate from 0% on HBOR’s share	19.5.2020	On-lending via 14 banks*	Active
Working Capital through Framework for Banks	1,200	Interest rate reduced by 0.75 pp	22.5.2020	On-lending via 8 banks**	Active
Working Capital for Rural Development	130	Interest rate 0.5%	1.6.2020	Direct lending	Active
Working Capital for Tourism Industry	600	Interest rate from 0%	15.4.2020	Direct lending	Applications received until 5th June
Insurance of Loan Portfolio	5,561	Insurance of 90% of the approved loan amount	8.4.2020	Via 15 banks***	Active

*Working Capital COVID-19 Measure and Working Capital for Wood Processing and Furniture Production - Entrepreneurs submit loan applications to one of commercial banks included in cooperation: Addiko Bank d.d., Agram banka d.d., BKS Bank AG, Erste&Steiermärkische Bank d.d., Hrvatska poštanska banka d.d., Istarska kreditna banka d.d., Kentbank d.d., OTP banka d.d., Podravska banka d.d., Privredna banka Zagreb d.d., Raiffeisenbank Austria d.d., Sberbank d.d., Slatinska banka d.d. and Zagrebačka banka d.d.

**Framework Loans to Banks - Entrepreneurs submit loan applications to one of commercial banks included in cooperation: Addiko Bank d.d,. Erste&Steiermärkische Bank d.d., Hrvatska poštanska banka d.d., OTP banka d.d., Privredna banka Zagreb d.d., Raiffeisenbank Austria d.d., Sberbank d.d. and Zagrebačka banka d.d.

***Loan Portfolio Insurance - Banks included in cooperation: Addiko bank d.d., Agram banka d.d., Banka Kovanica d.d., BKS Bank AG, Erste&Steiermärkische Bank d.d., Hrvatska poštanska banka d.d., Kentbank d.d., OTP banka d.d., Podravska banka d.d., Privredna banka Zagreb d.d., Slatinska banka d.d., Zagrebačka banka d.d. and HBOR as the lender.