News

After the signing of the Contract on strategic business cooperation and the Contract on business cooperation in the execution of project "Loan financing of craftsmen and small entrepreneurs of the City of Varaždin" at the end of November this year, as well as after the publishing of public tender for the granting of entrepreneurial loans from the project "Loan financing of craftsmen and small entrepreneurs of the City of Varaždin" at the beginning of December, cooperation of City of Varaždin and Vaba bank Inc. Varaždin, with the support of DAN - Development Agency North, has resulted today with the first approvals of entrepreneural loans to Varaždin craftsmen and entrepreneurs.

On the 2^nd session of the Committee for awarding entrepreneural loans, held today at the Development Agency North, 4 loans were approved in the total amount of HRK 1.380.000,00, being an official start of this project, that is more than welcome for many local craftsmen and entrepreneurs.

Loans from the project "Loan financing of craftsmen and small entrepreneurs of City of Varaždin" are granted in the amounts from HRK 75.000,00 to a maximum of HRK 500.000,00, and can be used for the purchase, construction, reconstruction of expansion of business facilities, purchase of equipment or parts of equipment, and for permanent working capital, i.e. working capital, to the amount of HRK 100.000,00. Maturity of the loans can be upto 7 years, including a one year grace period, unless the loan is used for working capital.

Loans can be utilized by craftsmen, small and medium enterprises, cooperatives and institutions, 100% owned by Croatian citizens, that have their head office in Varaždin and invest in the area of Varaždin.

The City of Varaždin subventiones the interest with 2%, so that the interest rate for the final user comes to 4,90% annualy, fixed. As an insurance instrument for these loans the Bank requires Debenture Notes by the loan user and its owner, as well as additional insurance instruments according to the bonitet assessment (co-debtors, mortgage, other usual insurance instruments, inluding the Guarantee of Development Agency North).

The advanteges of these credit lines in which local municipalities subvention the interest are various, and represent a quality and favourable financing source for potential loan users on their path to business idea realization.

An additional advantage of the cooperation between the City of Varaždin and Vaba bank Inc. Varaždin as a domestic partner bank is the potential that opens up additional possibilities for future projects, creating realistic framelines and actively advancing the economy of Varaždin.

At the beginning of December the Development Agency North - DAN issued a public tender for the granting of entrepreneurial loans from the project "Loan financing of craftsmen and small entrepreneurs of the City of Varazdin", that would be conducted in cooperation with Vaba bank Inc. Varaždin.

The maximum maturity is in 7 years with a grace period of maximum 1 year, except when the funds are used for working capital.

The City of Varaždin subventiones the interest with 2%, so that the interest rate for the final user is 4,90% annualy, fixed. As an insurance instrument for these loans a Debenture Note from the company and of the owner is required, and according to the bonitet of the client and the loan amount additional insurance instruments as well, in agreement with Vaba bank Inc. Varaždin (guarantors, mortgage, other usual insurance instruments, including the guarantee of DAN, Development Agency North).

All the required information regarding the project "Loan financing of craftsmen and small entrepreneurs of the City of Varaždin" can be found on the web-pages of the Development Agency North -DAN

Mayor of the City of Ivanec Milorad Batinić and CEO of Vaba bank Inc. Varaždin signed today, in City Hall of City of Ivanec, a Contract on business cooperation for the implementation of a project called "Loan financing of investments made by craftsmen and entrepreneurs into Business Area Ivanec", through which Vaba bank Inc. will grant entrepreneurial loans to users of the Business Area Ivanec at agreed terms, and the City of Ivanec will subvention the contracted interest rate with 2%.

Minister of Tourism of Republic of Croatia Damir Bajs and CEO of Vaba bank Inc. Varaždin Igor Čičak, signed today at the Ministry of Tourism a Contract on business cooperation in the Program for loan financing of small family entrepreneurship in tourism under the name "Incentive for success". 

Signing of the Contract was attended by employees of the Ministry of Tourism that are involved in the execution of this project, as well as by the Executive Director of Corporate Banking Sector of Vaba bank Inc., Jasna Slunjski.

Program "Incentive for success" is based on Bank's loan funds and interest subvention funds of the Ministry of Tourism. Ministry funds represent Government support to small and medium entrepreneurs to induce their initial investments into tourism, and the total subvention can be 5,5% at most, depending on the loan purpose.

Loan is approved to small entrepreneurs, craftsmen, cooperatives or Ltd. companies owned by citizens of Republic Croatia that are registered for performing gastronomy business activities in accomodation objects, i.e. to those that plan to invest in objects fo guest accomodation exclusively with a purpose of professional providing of accomodation services.

The minimum loan amount is EUR 25.000 - for investing in smaller objects, while the maximum loan amount, for investments in an entire object with supplementary contents (rooms, suites i.e. camping places) is EUR 100.000, and this for a hotel or a pension within the program "Under centenial roofs". A loan can also be approved for refinancing existing loans that were initially utilized for investments into smaller accomodation units - hotels, boarding houses or aparthotels with restaurants.

Loan application along with all required documentation is submitted by the entrepreneur to the Bank, and after the Bank makes a positive assessment, the final decision on the approval of the loan and interest subvention is brought by a Committee composed of representatives of the Bank, Ministry of Tourism, and Ministry of Economy, Labour and Entrepreneurship.

Goals of the program "Incentive for success" are the development and advancement of small family entrepreneurship, growth of employment, preventing grey economy, restructuring accomodation offer by increasing capacities with three or more ***, construction of new objects in line with the demands of a modern market, improving quality by building new contents and renewal and modernization of existing objects, but also the construction of professionally architectural formed objects, that are in coordination with the enviroment regarding their appearance and size, and the extension of tourist season and revenue increase.

„Through the signing of today's Contract Vaba bank Inc. Varaždin, one of the fastest growing banks in Republic Croatia, continues with its policy of active inducing of small and medium entrepreneurship. Contract on business cooperation has been signed with HAMAG with the same purpose, at the beginning of August last year. Guarantees of HAMAG can be utilized as an insurance instrument for these loans, which in addition to the lower interest rates, rounds up and completes the accessibility of these credit lines, making these loans very favourable, I am sure" - stated at this occasion CEO of Vaba bank Inc. Igor Čičak.

Minister Damir Bajs pointed out his satisfaction with the today's signing of this Contract and has stated that, in addition to this, many other favourable incentives directed towards the development and diversity of Croatian tourist offer are required. I am certain that together with Vaba bank Inc. Varaždin, but other banks with that we have or will sign these sort of contracts as well, we will enable Croatian craftsmen and entrepreneurs to transform their ideas to reality and to continue the pursuit of creating a tourist brand of our Croatia - he added.