ZAGREB, Feb 27 (Hina) - The Croatian Bank for Reconstruction and Development (HBOR) is continuing the implementation of programmes offering favourable loans to the tourism sector in 2017, with the continued reduction of interest rate by one percentage point and lower fees for loan applications, HBOR has stated.
"Repayment periods for loans taken for investment purposes are adjusted to the tourism sector and stretch up to 17 years. Over recent years, interest rates have been reduced on several occasions and investors in tourism can take loans with interest between 2 and 4 per cent, depending on business performance and areas of investment. HBOR enables financing up to 75% of a preliminary investment estimate, without Value Added Tax," HBOR has stated.
In 2016, the bank approved a total of 7.6 billion kuna in lending, and 21% of that amount went to companies in the tourism sector.
Last year, as many as 274 projects in tourism were supported by HBOR loans in the amount of HRK 1.8 billion, a rise of 17 per cent compared to 2015.
The lion's share, that is, 90 per cent of that lending, was approved for investments in Croatia's Adriatic region, and the rest for projects in the country's interior.
Over the past five years, HBOR has approved HRK 7.6 billion worth of loans for over 1,000 projects in tourism, and 96 per cent of that amount has been spent on new investments.
(EUR 1 = HRK 7.5)