As Novac writes on the 22nd of May, 2020, through framework loans to banks, HBOR has enabled the approval of new liquidity loans to Croatian businesses, enterprises and entrepreneurs affected by the coronavirus pandemic.

The liquidity loans come with welcome interest rates reduced by 0.75 p.b when compared to regular loans. Zagrebačka banka d.d., Privredna banka Zagreb d.d., Erste & Steiermärkische Bank d.d., OTP banka d.d., Raiffeisenbank Austria d.d., Hrvatska poštanska banka d.d., Addiko Bank d.d. and Sberbank d.d., have all cooperated in the move.

Beneficiaries of these new HBOR liquidity loans can be micro, small and medium-sized enterprises, and medium-capitalised enterprises (with up to 3,000 employees) that weren't facing business difficulties on the 31st of December, 2019. Croatian businesses applying for this new type of loan should, according to the Methodology for Calculating a COVID score introduced by Fina, be assessed as clients whose business is at risk. Where exactly the need for additional funding actually lies is also imperative.

"This way of lending will enable the faster approval of funds needed by businesses along with a reduced interest rate. Namely, more than 1.2 billion kuna was made available to businesses for new liquidity loans, which banks will, thanks to HBOR's sources, approve at an interest rate reduced by 0.75 p.b. when compared to regular ones,'' said Tamara Perko, President of the Management Board of HBOR.

The maximum loan amount to an applying businesses can amount to no more than 35 million kuna, and the funds can be used to finance employee salaries, overhead costs and other basic operating costs, the procurement of raw materials and the settlement of liabilities to suppliers and other similar operating expenses. However, it should be noted that existing credit liabilities to commercial banks and other financial institutions cannot be settled with these funds.

For more information and for the possibility of loan approval, interested business entities should contact one of the previously listed commercial banks.

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ZAGREB, April 10, 2020 - The European Commission on Thursday approved a second Croatian scheme for support to the economic sector in the context of the coronavirus pandemic, and the total credit potential of the two schemes is €1.8 billion (more than HRK 13.5 billion), intended for the real sector.

The schemes were approved on the basis of the Temporary Framework for State Aid Measures, adopted by the European Commission on March 19 and amended on April 3, the Croatian Bank for Reconstruction and Development (HBOR) said in a statement.

The first scheme, totalling €790 million (HRK 6 billion) and approved by the EC a few days ago, secures credit potential for exporters' liquidity in the form of insurance policies.

In cooperation with the Finance Ministry, a few days ago the HBOR put forward a second scheme, intended for small, medium and big enterprises affected by the coronavirus crisis and in need of working capital.

Under the scheme, the HBOR will provide favourable loans, with interest subsidised by the state. The total credit potential of subsidised loans is estimated at one billion euros.

More business news can be found in the dedicated section.

ZAGREB, January 28, 2019 - The Croatian Bank for Reconstruction and Development (HBOR) and the European Investment Fund (EIF) on Monday signed a 70 million-euro investment programme to support fast-growing SMEs and mid-caps established and operating in Croatia.

The investment programme is supported by the European Fund for Strategic Investments (EFSI), the core of the Investment Plan for Europe, according to a press release issued on the EIF web site.

The event at which the NPI Mandate Framework Agreement was signed, launched the initiative called CROGIP - Croatian Growth Investment Programme.

The HBOR management board chair Tamara Perko said at the ceremony in Zagreb that the agreement was supposed to help develop venture capital industry in the country.

HBOR and EIF each will participate in the programme with 35 million euro, "to finance this jointly developed programme and the combined commitments of 70 million euro are expected to catalyse additional private-sector investments into equity funds."

"A key programme objective is to support the emergence of fund managers, which focus a significant part of their investments into Croatian SMEs and midcaps," reads the press release.

EIF Chief Executive, Pier Luigi Gilibert was quoted as saying that "this new agreement will support the emergence of a sustainable private equity market in Croatia and to attract private investors to this market, by helping both national and international fund managers to target SMEs and midcaps," he added.

The European Investment Fund (EIF) is part of the European Investment Bank group.

More news on the HBOR can be found in the Business section.

ZAGREB, October 25, 2018 - The Croatian Reconstruction and Development Bank's (HBOR) strategy focuses on EU funds, introduction of new market products and stimulation of exports, HBOR Management Board chair Tamara Perko said at an international conference on export stimulation organised in Dubrovnik on Thursday by HBOR.

Ministry of Regional Development and EU Funds and the Croatian Bank for Reconstruction and Development sign an important agreement.

Croatian Bank for Reconstruction and Development (HBOR) posts profits in the amount of 107.2 million kuna in the first six months of the year.

Personnel changes coming to the Croatia's state-owned development bank as well.

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