Entrepreneurs to receive a new 80 million euros for the modernization of production and business

The Croatian Bank for Reconstruction and Development (HBOR), in cooperation with the Ministry of Regional Development and European Union Funds and the Ministry of the Economy, has developed a new financial instrument, “Loans for the modernization of production”, intended for small and medium-sized enterprises operating in the manufacturing sector.

The aim of the new program is to encourage the modernization, digitalization and increase in the productivity of companies through more favorable financing conditions, and its key feature is its structure, which includes a combination of loans and grants. A capital rebate, or write-off of the principal, which can amount to up to 50 percent of the total loan amount, is realized upon fulfillment of predefined criteria.

Loans will be granted without fees for the processing of the loan application, for the reservation of funds and for the early return (write-off) of the loan as a result of the realization of the capital rebate. The repayment period is up to 14 years, including a grace period of up to 3 years. The lowest loan amount is EUR 100,000, while the highest can reach EUR 3 million. The loan represents a combination of funds from the European Regional Development Fund (ERDF) with an interest rate of 0 percent per year, fixed, and HBOR funds with a fixed interest rate that is determined separately for each individual loan based on risk assessment. A total of EUR 79.7 million is available for placement by loan beneficiaries - of which 50% comes from the funds of the European Fund for Regional Development and 50% from the funds of HBOR.

The launch of this financial instrument further strengthens the efforts of HBOR and the relevant ministries to support the modernization and digital transformation of the Croatian manufacturing industry. Entrepreneurs have the opportunity, through favorable financing conditions, to realize projects that contribute to the development of competitiveness and productivity, which directly strengthens Croatia's overall economic resilience.