HBOR lowered interest rates in order to increase the use of EU funds

first_imgThe Management Board of HBOR has made a decision on a temporary reduction of the nominal interest rate under the program of lending to EU public sector projects to 2,5 percent, this reduction refers to loans that will be approved by the end of 2018.After the interest rates for lending to EU projects of the private sector and rural development, fisheries and wine envelope were reduced in 2017, a decision was made to temporarily reduce the interest rate for public sector projects.Thus, during this year, EU projects of rural development, fisheries and wine envelopes can be credited at an interest rate of 1,7 percent, EU private sector projects at an interest rate of 2,4 percent, and public sector projects at an interest rate of 2,5, 3 percent. Prior to these reductions, the minimum interest rates on all EU project lending programs were XNUMX percent. “By lowering interest rates while maintaining all other favorable conditions such as long repayment periods, the possibility of granting a grace period and using the grant as our own participation, we want to encourage entrepreneurs to invest and accelerate the dynamics of using available EU funds”Said Tamara Perko, President of the Management Board of HBOR.Source: HBORSo far, HBOR has supported more than 600 projects with an amount of more than HRK 3,4 billion through the program for lending to EU projects. Loans are approved directly, through commercial banks or according to the risk-sharing model for up to 15 years with the possibility of waiting up to 3 years, or up to 5 years for raising and / or restructuring long-term plantations and for the public sector. An additional advantage is that in certain cases the grant funds can be used to reduce the loan principal, and in the case of direct lending, HBOR can accept up to 70 percent of the grant amount as its own participation, HBOR points out.The interest rate reduction for EU projects of rural development, fisheries and wine envelope and public sector projects is in force for all loans approved until 31 December 12, and for those of the private sector until 2018 June 30. The final interest rate for each final The beneficiary depends on the credit rating as well as the collateral offered.Loans approved under these programs are intended to close the financial structure for project implementation, and can be used to co-finance eligible investments, as well as those investments that are an integral part of the project, but cannot be financed from EU funds.Source: HBORlast_img

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