30.01.2025.
The Croatian Bank for Reconstruction and Development has amended the Programme for the Insurance of Short-Term Export Receivables for the SMEs that have an annual export revenue of up to EUR 2.5 million by expanding the range of exporters that can be beneficiaries under the programme and extending the programme implementation duration for the period of the next six years.
One of the basic eligibility criteria for exporters has been changed by increasing the amount of export turnover for programme beneficiaries from current EUR 2 million to EUR 2.5 million, whereas the new programme implementation period is from 1 January 2025 to 31 December 2030.
Under the Programme, SME exporters, whose export turnover does not exceed EUR 2.5 million, can insure their monetary receivables from foreign buyers, with whom they do business, with a deferred payment of up to 180 days. The beneficiaries of the Programme are entitled to indemnity if the insured foreign buyer fails to pay due to the occurrence of any of the insured risks, which ensures increased competitiveness for Croatian exporters in the international market and provides them with additional security in doing business with foreign partners.
The objective of the amendments is to enable a larger number of SME exporters to use this programme for the purpose of protecting their liquidity in case of problems in payment collection from foreign buyers, which significantly increases their ability to compete in international markets.
To implement the aforementioned amendments, HBOR has obtained an approval from the European Commission to continue with the application of the Exemption Clause for the insurance of short-term export receivables against temporarily non-marketable commercial and political risks in the period from 1 January 2025 to 31 December 2030, which enables HBOR, as the state insurer, to fill in the gaps in the offer in the private insurance market and provide support to SME exporters and other Croatian exporters by insuring those risks that cannot be insured with private insurers.
Basic information on the new Exemption Clause:
The Croatian Bank for Reconstruction and Development has amended the Programme for the Insurance of Short-Term Export Receivables for the SMEs that have an annual export revenue of up to EUR 2.5 million by expanding the range of exporters that can be beneficiaries under the programme and extending the programme implementation duration for the period of the next six years.
One of the basic eligibility criteria for exporters has been changed by increasing the amount of export turnover for programme beneficiaries from current EUR 2 million to EUR 2.5 million, whereas the new programme implementation period is from 1 January 2025 to 31 December 2030.
Under the Programme, SME exporters, whose export turnover does not exceed EUR 2.5 million, can insure their monetary receivables from foreign buyers, with whom they do business, with a deferred payment of up to 180 days. The beneficiaries of the Programme are entitled to indemnity if the insured foreign buyer fails to pay due to the occurrence of any of the insured risks, which ensures increased competitiveness for Croatian exporters in the international market and provides them with additional security in doing business with foreign partners.
The objective of the amendments is to enable a larger number of SME exporters to use this programme for the purpose of protecting their liquidity in case of problems in payment collection from foreign buyers, which significantly increases their ability to compete in international markets.
To implement the aforementioned amendments, HBOR has obtained an approval from the European Commission to continue with the application of the Exemption Clause for the insurance of short-term export receivables against temporarily non-marketable commercial and political risks in the period from 1 January 2025 to 31 December 2030, which enables HBOR, as the state insurer, to fill in the gaps in the offer in the private insurance market and provide support to SME exporters and other Croatian exporters by insuring those risks that cannot be insured with private insurers.
Basic information on the new Exemption Clause:
- With an objective of promoting the export of Croatian goods and services, HBOR carries out the transactions of insurance and reinsurance of non-marketable and temporarily non-marketable commercial and political risks for and on behalf of the Republic of Croatia
- As the Exemption Clause, under which HBOR carried out the transactions of insurance of temporarily non-marketable commercial and political risks, expired on 31 December 2024, HBOR submitted a request to the European Commission for the extension of the Exemption Clause; and the European Commission made, on 18 December 2024, the Decision (number S.A. 116082) on the Extension of the Exemption Clause for HBOR for the coming six years (1 January 2025 - 31 December 2030)
- The Decision on the Extension of the Exemption Clause enables HBOR to continue filling the lack of short-term insurance in the private insurance market in the Republic of Croatia and provide support to Croatian exporters by covering those risks, for which they are unable to contract insurance with private insurers
- As the state export credit agency, HBOR has, in accordance with the Decision of the EC on the Exemption Clause, a legal basis, until 31 December 2030, to carry out the transactions of insurance and reinsurance of temporarily non-marketable risks as prescribed by the Communication from the European Commission as follows:
- Risks of small and medium-sized enterprises whose total annual export turnover does not exceed EUR 2.5 million;
- Individual risks with a risk period duration of at least 181 days and less than two years;
- All other risks that are, due to the lack of export credit insurance in the private market, temporarily considered non-marketable.