The Croatian government on Thursday adopted a 1.5 billion kuna (€200 million) aid programme for the tourism and sports sectors to help alleviate the impact of the coronavirus crisis.

The programme was approved by the European Commission on January 11 based on the Temporary Framework for State Aid. Its main objective is to ensure access to liquidity for the heavily affected tourism and sports sectors and to preserve their economic activity, Tourism and Sport Minister Nikolina Brnjac told a cabinet meeting.

Of the 1.5 billion kuna, 1 billion is intended for state guarantees to micro, small, and medium companies, while the remaining 500,000 kuna will be provided by the Croatian Bank for Reconstruction and Development (HBOR) in state guarantees to large companies.

The Ministry of Tourism and Sport will implement the programme in cooperation with the HBOR, HAMAG-BICRO and commercial banks, which will grant loans. The programme will benefit micro, small, medium and large enterprises in the two sectors and in related sectors.

Eligible beneficiaries are hotels, holiday resorts, campsites and other accommodation facilities, cafes, restaurants and other catering establishments, travel agencies, tour operators, boat charter companies, sports facilities, fitness centres, gyms, theme parks, recreation and entertainment centres, and health tourism businesses.

In order to facilitate affordable loans for liquidity, the programme provides for state guarantees covering 100% of the loan principal for micro, small and medium enterprises and state guarantees covering 90% of the loan principal for large companies, Brnjac said. These companies will be entitled to state aid if their business activity has been reduced or suspended on account of the coronavirus pandemic, she added.

The programme is expected to become operational by mid-February and aid should be granted by no later than June 30.