Gov’t Amends HAMAG-BICRO Loan Schemes For Entrepreneurs

Total Croatia News

ZAGREB, June 18, 2020 – The Croatian government on Thursday amended the HAMAG-BICRO agency’s schemes for loans for working capital for businesses affected by the coronavirus crisis and ESIF guarantees, with Prime Minister Andrej Plenkovic saying that this would enable the granting of further loans to entrepreneurs.

Plenkovic told a government session that businesses had made good use of loans intended to help businesses affected by the coronavirus crisis and that so far 5,128 requests worth HRK 343 million had been submitted by 900 businesses.

This is an important government measure that makes it possible to keep jobs, said Plenkovic, noting that the amendment of the schemes would help provide further loans for Croatian entrepreneurs.

Economy Minister Darko Horvat recalled that the government in March adopted changes to HAMAG-BICRO’s schemes “ESIF micro and small loans” and “ESIF guarantees”, while on April 2 a decision was made to adopt the scheme “COVID-19 working capital loans.”

In order to help member-countries make the most of the flexibility envisaged by rules on state support for the business sector affected by the COVID-19 pandemic, the European Commission adopted a document called the Temporary Framework, said Horvat.

Based on that document, HAMAG-BICRO defined a support scheme which the EC approved on May 12 and which envisages loans in the total amount of HRK 350 million as well as support in the form of guarantees worth HRK 420 million, to be issued until 31 December 2020, said Horvat.

Specifically, EU member-states are enabled to grant state support to micro, small and medium-sized businesses for urgent liquidity needs caused by the COVID-19 pandemic, in the amount of up to €800,000 for COVID-19 working capital loans, said the minister.

Horvat also said that up to one million euros would be provided for ESIF guarantees, as would a combination of measures from the Temporary Framework with support of small value, for urgent liquidity needs.


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