New Credit Lines of Croatian Bank for Reconstruction and Development
Croatian bank for Reconstruction and Development was funded by the Republic of Croatia on 12th of June 1992. Croatian Bank for Reconstruction and Development is the bank for development and export while its main task is promotion of Croatian economy’s development. By extending loans, insuring export transactions against political and commercial risks, issuing guarantees and providing business advice, Croatian Bank for Reconstruction and Development contributes to the enhancement of the Croatian economy’s competitiveness.
Croatian Bank for Reconstruction and Development, in order to increase economic activity and strengthen entrepreneurs’ ability for completing their investment projects, has presented the new credit line to support of Croatian economy, along with the standard credit programs and measures, such as: decreasing interest rate by 1 point for new investments in agriculture and fisheries, tourism, industry, environmental protection and energy efficiency and increasing the margin to banks for loans up to 15 million HRK. New support measures also include credit lines which are focused on increasing the absorption of EU funds for projects that will be financed from the European Structural and Investment Funds.
In addition, the Republic of Croatia, in the financial perspective 2014-2020, has 10.7 billion Euros at its disposal, from European structural and investment funds, in order to stimulate domestic economic growth. Given these facts, the Croatian Bank for Reconstruction and Development aims to increase the absorption of EU funds, and, in this regard, has introduced two credit programs that will contribute the absorption of European Structural and Investment Funds. These two programs include: Credit Program for the EU funds users from public sector and Credit program designed for the users from private sector, both of which are meant for project development which will also be financed from European Structural and Investment Funds. In 2015, for these credit programs, 800 million Euros are ensured.
Entrepreneurs who have completed the settlement procedure by conclusion of the commercial court, and who are the key creditors – particularly financial institutions that have supported the restructuring plan, have the ability to use Credit programs intended for this purpose. For this Credit program, the Croatian Bank for Reconstruction and Development has provided 200 million Euros in 2015. Except for the performance guarantees for export businesses, guarantees for contracting and execution of projects on domestic markets will be issued. This especially applies to contractors and equipment suppliers for projects financed by European Structural and Investment Funds, and companies that have successfully completed the settlement procedure.
For more information, please visit: www.hbor.hr