HRK 600m credit line with 0% and 1.5% interest rates available to tourist businesses

ZAGREB, April 16 (Hina) – The Tourism Ministry and the Croatian Bank for Reconstruction and Development (HBOR) have concluded a cooperation agreement whereby liquid assets are made available to businesses in the tourism sector through the HKR 600 million credit line which also includes interest-free loans.

Welcoming this agreement for the economic sector hard hit by the corona crisis, Prime Minister Andrej Plenkovic said on Thursday that the competent ministry had provided 26 million kuna for subsidies for interest on loans taken by businesses in the tourist industry.

Interest rates of up to two percentage points can be subsidised under the COVID-19 measure.

The credit line of 600 million kuna is made available for the purpose of job preservation and cash flow as well as for enabling companies in this sector to restart doing business in a successful manner, said Tourism Minister Gari Cappelli.

HBOR board chairwoman Tamara Perko, who together with Cappelli signed the agreement, said that the funds under this credit line would be used for insurance policies for loans on working capital for exporters.

The fact which is taken in consideration is that potential credit users are those who have mortgaged their property and do not have enough funds for collateral purposes in the form of property or other assets, she said.

The requests for loans will be directly submitted to HBOR, and the loans will be given for up to five years, with a year-long grace period.

The interest rates will be zero in the first three years of the debt repayment owing to the subventions provided by the ministry and they will increase to 1.5% in the fourth and the fifth year of the loan repayment.