Further Benefits under Working Capital Loans
Besides moratorium on and rescheduling of obligations, HBOR offered a new measure to entrepreneurs in the form of working capital loans at favourable terms and conditions in cooperation with commercial banks. The main benefits of the new measure: interest rate as low as 0 percent on HBOR’s share in the loan and use of HBOR’s portfolio insurance as collateral.
Under the Working Capital Covid-19 Measure, loans will be approved through the risk sharing model in cooperation with commercial banks – 50 percent of funds from HBOR’s sources at an interest rate of as low as 0 percent in the first year of loan repayment, whereas 2 percent interest will be charged in the second and third year of loan repayment with a possibility of reducing this interest rate in the next years as well (level of interest depends on the state aid regulations). The other part of the loan will be approved from commercial bank’s sources.
Entrepreneurs have to submit their applications for these funds to one of twelve banks with whom HBOR has agreed to cooperate on this loan programme.
Loans will be approved for a period of up to 3 years and may be drawn down by entrepreneurs having been affected by the COVID-19 pandemic for the purposes of financing their current operations and settling short-term obligations. The exporters (those operating in the tourism industry included) will be able to use HBOR’s portfolio loan insurance as collateral.
Under the Working Capital Covid-19 Measure, loans will be approved through the risk sharing model in cooperation with commercial banks – 50 percent of funds from HBOR’s sources at an interest rate of as low as 0 percent in the first year of loan repayment, whereas 2 percent interest will be charged in the second and third year of loan repayment with a possibility of reducing this interest rate in the next years as well (level of interest depends on the state aid regulations). The other part of the loan will be approved from commercial bank’s sources.
Entrepreneurs have to submit their applications for these funds to one of twelve banks with whom HBOR has agreed to cooperate on this loan programme.
Loans will be approved for a period of up to 3 years and may be drawn down by entrepreneurs having been affected by the COVID-19 pandemic for the purposes of financing their current operations and settling short-term obligations. The exporters (those operating in the tourism industry included) will be able to use HBOR’s portfolio loan insurance as collateral.