Gov't adopts micro loan programme

The Croatian government on Wednesday adopted the credit programme "Microcredit - first step towards entrepreneurship" of the Croatian Agency for SMEs and Investments, making available to entrepreneurs loans under conditions that are much more favourable than commercial loans.

The programme envisages the granting of micro loans ranging from the minimum amount of 10,000 kuna to the maximum amount of 120,000 kuna.

Loans will be granted at an interest rate of 0.99%, with a six month grace and a repayment period of up to five years.

The allowed share of current assets in the loan is a maximum 40% of the loan value, and downpayment is not required.

This year five million kuna has been set aside from the state budget for micro loan programmes and they are expected to provide direct assistance to at least 41 new business ventures.

The loans will be used to buy machinery, equipment and tools, buy/remodel land and business premises, as well as develop software, IT solutions and other non-material assets.

(Hina)



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