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Finance Minister introduces guarantee fund bill to parliament

Autor: mses
ZAGREB, March 9 (Hina) - Introducing a bill on a guarantee fund designed as a bailout measure for the economy, Croatian Finance Minister Martina Dalic told the national parliament that the amount in the fund would be one billion kuna.

The purpose of the guarantee fund is to facilitate efforts to attract new investments and finish the ongoing investments by strengthening the capacity of entrepreneurs for implementing new projects.

Thanks to the fund, the risk is to be shared between commercial banks, the Croatian Bank for Reconstruction and Development (HBOR) and the government, which provides collateral for individual projects, she said.

Collateral will be put up by the HBOR against entrepreneurial loans issued by commercial banks, the minister added.

The collateral will amount to 30 percent of the capital sum of the loan, with the upper limit being HRK 50 million. Banks will take part in auctions for collateral quota, and the loans will be given for a minimum of 20 months and a maximum of 15 years.

This should provide for more favourable terms and conditions for loans designed for business people and to encourage investment projects, according to Dalic.

Entrepreneurs, interested in such loans, should contact commercial banks, while HBOR is tasked with monitoring how money from the loan is spent.

(Hina) ms

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