WORKING CAPITAL LOANS WITH UP TO 5-YEAR REPAYMENT - INTEREST RATE AS LOW AS 0% ON HBOR’s SHARE IN LOAN

Repayment period under the Working Capital COVID-19 Measure has been extended from 3 years to 5 years. Loans under this programme are on-lent through 14 commercial banks under the risk-sharing model at an interest rate as low as 0% on HBOR’s share in the loan.

Due to the fact that business conditions for Croatian entrepreneurs are still difficult, and in order to facilitate operations and loan repayments, HBOR has extended the repayment period under the Working Capital COVID-19 Measure to 5 years, including the possibility of using up to 1-year grace period.

Interest rate as low as 0% on HBOR’s share in loan

Besides extended repayment period, the benefits of this programme include an interest rate of 0% on HBOR’s share in the loan for the first 3 years of repayment (the level of interest rate depends on the rules on state aid award). Neither application processing fee nor commitment fee is charged on HBOR’s share in the loan. Eligible borrowers are business entities operating in both private and public sectors that are obliged to prove negative consequences caused by the COVID-19 pandemic (COVID Score). Loan application can be submitted to one of 14 banks with which HBOR has agreed to cooperate under this programme. Minimum loan amount that can be applied for from HBOR’s sources is HRK 1 million, and the other part of the loan is approved from commercial bank’s sources. Loans exceeding HRK 37 million can be approved directly.

Loans at interest rates reduced by 0.75 pp via 8 banks

Favourable liquidity loans from HBOR's sources can be applied for by entrepreneurs also through 8 banks with which HBOR executed framework loan agreements in May. In this way, entrepreneurs have been given access to HRK 1.2 billion in new liquidity loans at interest rates reduced by 0.75 pp compared with regular interest rates as a result of using HBOR’s sources. Minimum loan amount that can be applied for is not determined, and maximum loan amount is HRK 35 million.

HRK 300 million already committed to entrepreneurs in tourism industry

Until 5 June 2020, small and medium-sized enterprises active in the tourism industry could submit their applications for working capital loans at an interest rate as low as 0% to HBOR directly. By that date, more than 550 applications were received, half of which have already been processed with loans totalling almost HRK 300 million having already been committed.

Working capital for rural development at 0.5% interest rate

Loans under the Working Capital for Rural Development programme in the amount ranging from HRK 190 thousand to HRK 1.52 million are approved by HBOR directly, without fees charged, at an interest rate of 0.5% and debentures as the only collateral.

HBOR assumes 50% of risk on liquidity loans committed to exporters and indirect exporters

In addition to loans at favourable terms and conditions, HBOR has launched the Exporters' Liquidity Loan Portfolio Insurance programme. HBOR insures 50% of the amount of principal and interest of approved loans included by the banks into the portfolio, thus facilitating and accelerating the granting of new funds for maintaining the liquidity of exporters and indirect exporters.

Moratorium for all clients extended

HBOR has made it possible for all clients, to whom direct loans have been approved, to use a moratorium of up to 7 months (until 30 September 2020) or up to 10 months for clients with a positive COVID Score (until 31 December 2020). The clients active in the tourism industry can use a moratorium of up to 16 months (until 30 June 2021).

A brief overview of COVID-19 measures

*Working Capital COVID-19 and Working Capital for Entrepreneurs in Wood Processing and Furniture Production Industry - 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.