Unique credit line for private renters presented
Today, the Ministry of Tourism and the Croatian Bank for Reconstruction and Development (HBOR) signed an Agreement on Business Cooperation in the Implementation of Financing of Private Landlords, which will be approved through commercial banks. Currently, more than 103 thousand private and family accommodation facilities are registered in Croatia, which puts the category of family accommodation and private renters in the largest accommodation share in Croatian tourism. Emphasizing that private renters are interested in investing and raising the quality of their accommodation and that they have already expressed considerable interest in the credit line, Minister Cappelli pointed out that the credit line is a response to the needs of private renters currently registered in Croatia. The unique credit line of the Ministry of Tourism and HBOR, which was initially joined by Hrvatska poštanska banka and Podravska banka, is intended for natural persons registered as private renters who at the time of loan approval have a decision from the competent office on approval for household catering services; accommodation in a room, apartment, studio apartment or holiday home for up to ten people, or twenty beds and which provide accommodation in a camp with a total of ten accommodation units, or for thirty guests at a time. The ultimate goal of the credit line is to equalize the quality and achieve the best possible service in private accommodation and raise the competitiveness of Croatian tourism through quality tourist products and services. The program of financing the work of private renters includes the implementation of activities related to renovation, adaptation, reconstruction and equipping of household facilities, and / or equipping facilities, construction and equipping of new indoor or outdoor pools, as well as the necessary infrastructure for cycling, sports and recreation and other additional tourist facilities, subject to obtaining a new decision on the provision of catering services in the household in accordance with the current Ordinance on the classification and categorization of catering facilities in the household. The presented loans are contracted in HRK 20.000 to 375.000 with an interest rate of 3,7 percent per year, ie in euros from 2.600 to 50.000 euros with an agreed interest rate of 3 percent per year. The financing is based on HBOR’s loan funds, while the Ministry of Tourism provides funds to subsidize part of the agreed regular interest rate of 1 percent per year and ultimately interest rates of 2,7 percent for loans in kuna and 2 percent for loans in euros. The shortest repayment period is 13 months and the longest 10 years, including a grace period of 12 months. It is important to note that the loans are not intended for the construction of new and increasing the number of existing accommodation capacities, refinancing of existing loans or refund of funds of users invested in accommodation capacity. Side dish: Presentation / Unique credit line for financing the work of private renters So, with the MINT subsidy, the loans will be with an interest rate of 2,70% for loans in kuna and 2,00% interest for loans in euros, all with a repayment period of 10 years with a grace period of one year. “This is an extremely important segment of the tourist accommodation offer in which, unfortunately, there is still a certain discrepancy in standards because some facilities still operate according to the old, invalid regulations and standards from twenty years ago. To this end, at the end of last year we presented amendments to the Law on Hospitality, a kind of legal reform that is a framework for future development and competitiveness of tourism in line with global tourism trends, and our credit line is the last move that I believe will help others. harmonization. Ultimately, our common goal is to make family accommodation in Croatia even better, an internationally recognizable and desirable tourist product that is intended for targeted market niches throughout the year.” said Tourism Minister Gary Cappelli. The aim of this program is to harmonize the standards of accommodation facilities in which household catering services are provided, to raise the overall level of quality and additional offer of private accommodation, and ultimately to improve capacity utilization and strengthen year-round tourism.