Institution details
HBOR - Croatian Bank for Reconstruction and Development (HBOR)
Key facts
- Established in 1992
- Ownership: Public
- Strossmayerov trg 9
- +385 1 4591 539/ +385 1 4591 546
- https://www.hbor.hr/en/
Latest update: 03/12/2021
rating type | rating agency | type | rating |
---|---|---|---|
Institution rating | S&P | Foreign currency | BB+ |
Country rating | S&P | Local currency | BB+ |
Products
- Insurance of short-term export receivables
- Insurance of short-term export receivables for SMEs
- Buyer credit insurance
- Buyer credit direct loans
- Supplier credit direct loans
- Other products
Insurance of short-term export receivables
Allows exporters to insure receivables with a risk period of less than 2 years
In each insured risk, HBOR can participate with the maximum share of 90%, depending on the risk assessment
For private insurers, it is possible to reinsure against non-marketable or temporarily non-marketable commercial and political risks
Insurance of short-term export receivables for SMEs
SMEs may insure export receivables with a risk period of up to 180 days
Exporters must have annual revenue of no more than EUR 2 million
Amount: Maximum EUR 50,000
Cover: Up to 95%, depending on the risk assessment
Buyer credit insurance
Insures loan to buyer for the purchase of goods and services from the exporter
Proceeds of the loan are disbursed to the exporter
Insurance is provided to buyers or buyers’ lenders
Cover: Up to 95%
Buyer credit direct loans
Finance export of goods and services
Eligible borrowers:
- The commercial bank of a foreign buyer, with whom an exporter has concluded an export contract
- The foreign buyer with acceptable collateral
Manner of implementation by HBOR: Co-finances with other banks or finances on its own
Tenors and loan amount:
- Up to 2 years: Up to 100% of the export contract value
- Over 2 years: Up to 85% of the export contract value
Advance payments paid by buyers:
- At least 15% of the export contract value, due before the first disbursement of the loan
- At least 20% of the contracted price for construction of ships
Maximum local cost financed is 30% of the exported value
Currency: Loans are denominated in the export contract currency
Repayment periods (by type of goods and services exported)
- Consumer goods with service life of 1 year or less, including related services: Up to 6 months
- Consumer goods with service life of more than 1 year, including related services: Up to 2 years
- - Parts and components: Up to 5 years
- Quasi-capital goods (capital goods of lower individual value): Up to 5 years
- Capital goods: Up to 10 years
- For financing the construction of hydro and thermal power plants, and renewable energy projects: Up to 15 years
Principal repayment: Repayment in equal monthly, quarterly, semi-annual, or (exceptionally) annual installments
- Grace period, then the first installment 1, 3, 6, or 12 months after the loan repayment starts
Interest: Determined by creditworthiness of the buyer/bank, the importing country, and the export transaction:
- Fixed interest rate: Cannot be lower than CIRR at loan agreement execution; cannot be lower than CIRR + 0.2% before the loan agreement conclusion
- Variable interest rate: LIBOR/EURIBOR + margin
Fees:
- Loan application fee final borrowers: 0.5% one-off, charged on the committed amount
- Commitment fee: Up to 1%, starting from fulfilling conditions precedent through final disbursement
Supplier credit direct loans
Direct lending to finance the export of goods and services, except consumer goods pursuant to the rules determined by the OECD Consensus
Eligible borrowers: Exporters of goods, works, or services who have concluded an export contract with a foreign buyer
Tenor and loan amount:
- Up to 2 years: Up to 100% of the export contract value
- Over 2 years: Up to 85% of the export contract value
Repayment period: From 180 days to 15 years depending on type of goods and/or services exported
Interest: Depends on the creditworthiness of the supplier and the type of export transaction:
- Fixed interest rate: CIRR + margin (ranges from 0.2%–2%)
- Variable interest rate: LIBOR/EURIBOR + margin
Fees:
- Loan application fee: 0.5% one-off, charged on the committed loan amount
- Commitment fee: Up to 1% on loan amount through final disbursement
Other products
- Pre-export finance insurance: Enables an exporter to obtain working capital by insuring a collection of receivables (up to 80%); typically used when the exporter cannot offer customary collateral to a commercial lender
- Direct delivery of goods and services insurance: A supplier credit insurance product that allows exporters to insure their collection of export receivables (up to 90%) in cases where the buyer has a commercial loan to buy goods and services
- Insurance against losses during production: Allows the exporter to insure against the risk of losses if the buyer terminates the contract due to political or commercial risk events; only granted for special orders from a foreign buyer that cannot be sold to another buyer
- Insurance of bank guarantees issued for winning or performing export contracts: Enables banks to insure the risk of payment under a guarantee (up to 80% cover) owing to calling by a guarantee beneficiary (fair and unfair)
- Pre-export finance, letters of credit, loans, and leasing for SMEs
- Payment and performance guarantees, counter-guarantees, and letters of intent
Modality | Tenor | Cover type | coverage |
---|---|---|---|
Insurance | Short/medium/long-term | Comprehensive | Up to 95% |
Performance highlights
What's new?
- In 2020, entrepreneurs were allowed to introduce a moratorium on and reschedule their existing loan obligations towards HBOR and were offered new liquidity loans at favourable terms and conditions in cooperation with commercial banks.
- Adheres to UN global compact principles related to human rights, labor, environment, and anti-corruption
- Parties in HBOR transactions must abide by its code of conduct
- Based on permission given by European Commission, HBOR may also temporarily insure and reinsure short-term transactions with EU and OECD debtors for which there is no capacity on the private market
- In insurance programs which HBOR covers the risk of exporter, the preconditions determined in the regulations on state aid must be met