HBOR Loans Provided to Croatian Farmers with 0.5% Interest

By 19 December 2020
HBOR Loans Provided to Croatian Farmers with 0.5% Interest
Copyright Romulic and Stojcic

As Zlatko Simic/Novac writes on the 18th of December, 2020, joint cooperation between the Ministry of Agriculture and HBOR in the middle of this year introduced a new financial instrument called ''Working capital for rural development" which provided favourable HBOR loans and funds for lending liquidity to Croatian farmers and processors of agricultural products, as well as entities operating in the forestry sector affected by the ongoing pandemic.

Business difficulties caused by the coronavirus epidemic are proven by one of the ten criteria, including reduced demand or the possibility of product placement, an increase in production costs or the inability to carry out agro-technical measures in a timely manner.

Working capital HBOR loans are approved directly at an interest rate of 0.5 percent, and loan users are exempt from all fees normally charged when approving loans.

Documentation needed for this HBOR loans

The loan amount can be from 190 thousand to 1.52 million kuna, the funds have been approved for a period of up to five years, including a grace period of up to 12 months.

Applications for these HBOR loans can be submitted by entities registered as family farms (OPG) in the VAT system, a trade (obrt) registered to perform an agricultural activity, a company or cooperative, including producer organisations. The documentation required for processing can also be submitted electronically, and the processing of loan applications is further simplified and accelerated.

HBOR loans can be used for working capital required for the smooth running of production and financing of current operations (the preparation of production, the purchase of raw materials, other production costs, labour costs, the settlement of trade payables and other general operating expenses).

These HBOR loans will also be available in 2021

Existing credit liabilities to commercial banks and other financial institutions cannot be settled with these funds.

The total amount of funds intended for these loans is 130 million kuna, and so far, HBOR loans in the amount of more than 70 million kuna have been approved. The funds will continue to be available during 2021, and interested beneficiaries can still apply for a loan that they can use, for example, to finance spring sowing or planting, production and processing.

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