ANNOUNCEMENT 22 Jul 2015

In July 2015, the government of Croatia announced a change in private-sector financial support.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 1 neutral
  • 0 liberalising

SOURCE



European Investment Bank (In English) http://www.eib.org/projects/pipeline/2015/20150153.htm.

HBOR (In English) http://www.hbor.hr/fgs.axd?id=3236


Inception date: No inception date

Loan guarantee

On 22 July 2015, the Croatian Bank for Reconstruction and Development (HBOR) introduced the risk sharing model for large projects. HBOR in its official statements announced that this risk sharing model, primarily represents a method for implementing those HBOR loan programmes that are in cooperation with commercial banks. According to this model,HBOR and commercial banks share the risk of collecting repayments of loan funds via the following manner:

  • Commercial banks finance at least 50% of the total loan amount;
  • HBOR finances up to 50% of the total loan amount.

It is important denoting that the risk sharing model for large projects primarily focuses on sectors related with: agriculture, processing, tourism, renewable energy and energy efficiency.
Furthermore, the risk sharing model for large projects, is intended for the financing of HBOR loans which minimum value is HRK 9.0 million (USD 1,337,200.83).
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
 

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AFFECTED PRODUCTS

 
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