HBOR has introduced the following new measures and programmes:

1. Moratorium on existing obligations

The clients, who have been granted a direct loan, have already received HBOR’s notice informing them that they can take a moratorium from 1 April 2020 to 30 June 2020 on unpaid obligations maturing from 1 March 2020 to 30 June 2020 with a possibility of extension should the adverse impacts of the COVID–19 pandemic on the economy last for a longer period of time. The clients, to whom loans under HBOR’s loan programmes have been granted through commercial banks, have to submit their moratorium applications to their commercial banks. HBOR is willing to support any moratorium application submitted by clients to whom loans under HBOR’s loan programmes have been approved through commercial banks or under risk-sharing models.

2. Rescheduling of obligations

Entrepreneurs have been offered a possibility to reschedule their existing loan obligations towards HBOR. The rescheduling includes the possibility of extending loan disbursement, grace and repayment periods by 6 months.

3. Working capital loans – portfolio or separate guarantee and 0 percent interest on HBOR’s share

Under the Working Capital programme, 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 (level of interest depends on the state aid regulations). The other part of the loan will be approved from commercial bank’s sources. 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 entrepreneurs (those operating in the tourism industry included) having generated at least 20 percent of revenues from exports in the past business year will be able to use HBOR’s portfolio or separate loan insurance as collateral.

Other forms of funding entrepreneurs’ liquidity are being negotiated with commercial banks.

4. Portfolio insurance of loans for liquidity of exporters and their suppliers

It will be possible to use HBOR’s portfolio insurance as a guarantee for up to 50 percent of the loan amount approved by commercial banks to exporters as new loans for liquidity (entrepreneurs of all sizes and from all sectors of the economy, tourism included, having generated 20 percent of revenues from exports in the past business year). Portfolio insurance will facilitate and accelerate the process of obtaining new liquidity loans at low premium rates and longer maturities (up to 6 years, including the possibility of up to 1-year grace periods). Soon, these benefits will also be made available to indirect exporters (suppliers of exporters).

5. Current loan programmes – interest rates of 2 percent and lower

HBOR’s funds for the financing of investment activities and current loan programmes for the financing of working capital (Pre-Shipment Export Finance and Working Capital) are, and will be in the future, available to Croatian entrepreneurs and the public sector at favourable terms and conditions. Interest rates of 2 percent and lower will be charged to a large number of entrepreneurs under these programmes.

6. Future measures

In cooperation with local and foreign institutions, HBOR has been developing other measures and will, in line with its role, adapt its activities and programmes to the requirements and circumstances in which Croatian entrepreneurs operate. This primarily relates to the development of new guarantee schemes and the financing of sectors affected by the pandemic.