SEEbiz.eu

Decisions on loans and guarantees will be made by banks, while the Croatian Bank for Reconstruction and Development (HBOR) will only supervise the execution. More precisely, banks will provide 70% and the Croatian Bank for Reconstruction and Development (HBOR) another 30% of the loans to be granted at auctions, Jutarnji.hr writes.

Banks offering lower interest rates will have an advantage when granting bailout loans to the corporate sector, while those willing to take greater risk will be given higher stake in investments guaranteed by the state. Also, banks that fail to allocate all 70% of money at disposal will lose their precedence at the subsequent auction.

Analysts do not expect much interest, especially for funding investments, vital for economic recovery. Others say the budget will profit from the bailout loans as these can be used to pay taxes, while the investment loans will aid banks by transfering some of the risk to the state.

Meanwhile, entrepreneurs are concerned with the restrictive conditions, but are also disappointed with interest rates of between 6 and 7% which they expected to be max. 5%.