HBOR, LFA TO GRANT LOANS FOR CROATIAN-BAVARIAN INVESTMENTS

ZAGREB, Dec 9 (Hina) - The Croatian Reconstruction and Development Bank (HBOR) and Bayerische Landesanstalt fuer Aufbaufinanzierung (LfA) from Munich will grant loans to domestic entrepreneurs on the basis of a programme for credit financing of joint Croatian- Bavarian investments in Croatia. Speaking about the programme, HBOR management head Anton Kovacev said the loans would be granted mostly to Croatian entrepreneurs entering joint ventures with Bavarian partners, who also include Croatian citizens having registered companies in Bavaria. Croatian entrepreneurs will be financed by the HBOR and Bavarian business people will be financed by the LfA. According to Kovacev, loans can be sought by a legal or physical entity having a contract or a preliminary contract for joint investments with a Bavarian entrepreneur. Apart from successful business, loan requirements include at least 51% private ownership of the entity and less than 200 employees. Loans can be used for the purchase of land, business facilities, construction and reconstruction of existing facilities, as well as for the purchase of equipment, licences, and patents. The HBOR will participate in the share of domestic entrepreneurs in joint investments with eight million kuna at most. The payment period is eight years, with a two-year grace and the annual interest rate of seven per cent for areas of special state concern and islands, and nine per cent for other Croatian areas. The loans will be granted exclusively through commercial banks. (hina) rml