The Croatian Bank for Reconstruction and Development (HBOR) on Tuesday announced special credit facilities for businesses in the earthquake-effected Sisak-Moslavina County, including interest rates of as low as 0.8% for investment and of 0.3% for working capital.

The HBOR offered more favourable credit terms for businesses operating in the earthquake-hit areas to speed up the reconstruction of damaged business premises and equipment, restoration of business operations, and economic development of the region.

Private and public enterprises in Sisak-Moslavina County can finance their investment projects with HBOR funds at an annual interest rate of 1% free of charge for application processing or modification of credit terms.

The HBOR noted that for small and medium-sized enterprises employing persons aged 30 and under, the interest rate can be further lowered to 0.8%.

Both private and public companies are entitled to a loan fully covering the estimated cost of investment, including VAT, and to a refund of the cost of investment carried out after the earthquake.

Loans are granted, depending on their purpose, for a period of up to 17 years, including a four-year- grace period.

Loans for working capital are granted at an annual interest rate of 0.5% without additional charges, while small and medium-sized enterprises employing persons aged 30 and under are entitled to an interest rate of 0.3%.

To facilitate access to loans for liquidity, the minimum collateral coverage has been reduced to 70%.