Z A R A d. o. o. ZAGORJEDEVELOPMENTAGENCY
. KRAPINA ZAGORJE COUNTY
North west part of Croatia 1.229 km2 143.432 inhabitants (116 inhabitants/km2) Processing industry, tourism, construction nad trade
2 In 2006 Zagorje Development Agency has founded the Local Guarantee Fund, in accordance with the decision of the Municipality of Krapina – Zagorje County Technical support by USAID In November 2006, the treaty with the PBZ bank was signed and the deposit account was opened (initial deposit by Ministry of Economy, Labour and Entrepreneurship and Krapina-zagorje county
3 What is the role of the Local Guarantee Fund (LGF)?
The Local Guarantee Fund is an instrument of insurance, which makes possible for small and medium entrepreneurs to get a loan which they would not get by regular banking methodology, due to lack of regular insurance instrument
Management and regulation of LGF? Management of LGF is regulated by the special “Book of regulations regarding the way of doing business and managing of guarantee scheme” that is in accordance with the Regional Operative Plan of Krapina – Zagorje County
4
The goals of LGF?
The main goal of the LGF is to ensure the financial resources which will be used as a collateral for quality entrepreneurship projects for small and medium size entrepreneurs from Krapina – Zagorje County in accordance with the parameters defined by the “Book of regulations” and legal acts of business banks Also, the goal is to ensure financial resources of 3.ooo.ooo kn for the period of 5 years, which would boost the financial potential of Zagorje Development Agency and make possible for this agency to issue 15.000.000 kn of guarantees
5
Banks that Zagorje Development has signed the LGF treaty with?
Privredna banka Zagreb Zagrebačka bank Raiffeisenbank Austria Societe Generale – Splitska Bank OTP banka d.d. Zagreb Hypo Alpe – Adria Bank Erste bank
6 The budget of guarantee schemes is generated through:
Payments of the members of the Organizations Donations Provisions on issued guarantees Government subsidy Government and fund donations
7 Who can be the user of the guarantee?
• private limited companies • crafts • cooperatives • institutions • familiy farmers within the value added tax system • autonomus occupations
*that have registred office in Krapina – Zagorje County; that are in private ownership; that have less than 50 employees
8 Conditions for gaining guarantee!
• Max. 50 employees • Max. amount of guarantee is € 50.000,00 • Max. amount of guarantee can be up to 50% of granted loan • Maximum repayment period is 10 years • The guarantee covers only the capital of the loan • Professional activities that are in accordance with the LGF “Book of regulations” and the “Regional Operative Plan of Krapina – Zagorje County” • The Guarantees will be available only for the long term, investment loans (buying machines, equipment or high technologies)
9 Businesses that are suitable for gaining the guarantee!
• Production; • tourism; • agriculture; • various services; • IT…
Businesses that are not suitable for gaining the guarantee: catering and trade; wholesale trade; Tobacco production or sale; Residential mortgage loan; Loan reprogramming…
10 Who makes the decision on guarantee issuing?
The decisions on guarantee issuing are carried by the Supervisory body that has 5 members, the representatives of: - ZARA - Krapina – Zagorje County - Croatian Chamber of economy, Krapina County Chamber - Croatian Chamber of Commerce and Trade, County Chamber Krapina - Business Bank
11 Supervisory body ZARA • The president of the Supervisory Director body is the director of ZARA Business County bank Supervisory body
HGK HOK
12 The procedure of issuing the guarantee!
1. The enterpreneur fills in the Form for Issuing of the Guarantees in the business bank in which he asks for the loan 2. The business bank sends the mentioned form to ZARA with all the necessary documentation in accordance with the LGF “Book of Regulations” 3. ZARA ratifies the adequacy of entrepreneurial request for the insurance (The guarantee Team of ZARA). 4. ZARA’s team for Guarantee Issuing makes reference for the guarantee issuing and sends it to the LGF Supervisory body. 5. The Supervisory body makes the decision and if it is positive, the Agreement on Guarantee is concluded between the guarantee gainer and the Zagorje Development Agency. 13 The procedure on issuing the guarantee!
ZARA asks the borrower for the insurance in the form of bill of exchange with the “no protest” clause and in the form of bianco loanstock of the borrower and it’s owner
How long does the procedure last?
The procedure of issuing and realizing of the guarantee lasts for 5 days maximum
What are the expenses of the guarantee? The provision for the guarantee is 1% of the amount guaranteed + value added tax before the loan is paid to the borrower by the bank and it is deposited on the LGF account.
14 The moment of the guarantee activation
In the case of default of the obligations of the borrower (longer than 90 days)
Which is the procedure when activating the guarantee?
The loan giver shall submit a report and statement to ZARA confirming that the borrower does not meet its obligations for more than 90 days
15 The time period from receiving of the request to the guarantee activation!
The decision on paying the guarantee is made within the period of 3 to 5 days from the request receiveing.
- 1 guarantee activated
16 THE AMOUNT OF ISSUED GUARANTEES
BANK The amount of guarantee in € The amount of credit in €
1 . PBZ d.d. 244.563,00 893.345,00
2 . ZABA d.d. 63.301,00 137.562,00
3 . ERSTE d.d. 41.095,00 82.191,00
4 . OTP d.d. 50.000,00 205.479,00
Total 398.959,00 euro 1.318.577,00
• The number of the new workplaces – 30 17 Precentage of guarantees issued by the specific year
31% 23%
Tha total amount of guarantee issued in 2007 Tha total amount of guarantee issued in 2008 Tha total amount of guarantee issued in 2009
46%
18 LOKALNI GARANTNI FOND (LGF)
19 Basic data about guarantee user
Name: Numero B.
The legal form of registy: Private limited company
MBO: 00929347 Ljudevita Gaja 7/a, 49250 Registered office: Zlatar Owner: Ljiljana Bočkaj Date of registration: August 14th, 1994
Code of occupation: 070250 – wholesale retail
Number of employees: 8 The results of crediting: Business bank: Privredna banka Zagreb By realizing the above investments, the investor has The guarantee amount: 48.000,00 € significantly expanded and enhanced its activity, both quantitatively and qualitatively, and therefore created the The description of the Services conditions for increasing the financial effects. It is also occupation: important to emphasize that with the investment six The credit purpose: Supply of the catering people has been employed as a direct result of the equipment for the traditional credit. restaurant 20 Basic data about guarantee user
Name: Botanica nova d.o.o.
The legal form of registy: Private limited company
MBO: 02148838
Registered office: Oroslavlje, Andrijaševečka 9
Owner: Marčela Grabušić
Date of registration: 20.11.2006. godine
Code of occupation: 01121
Number of employees: 3 The result of the crediting: Business bank: Privredna banka Zagreb By using the granted funds, the entrepreneur has The guarantee amount: 19.500,00 € realized its investment, which is related to the The description of the Flower and seedlings groving furnishing of greenhouse surface area 550 m2. occupation: in greenhouses. The greenhouse is equipped with mobile tables, tub with flowers and termogen furnace for The credit purpose: Equiping the existing heating greenhouses. greenhouse By realizing of the investment, funds are provided to ensure smooth operation, employed21 two more workers and extended the basic range of offerings Basic data about guarantee user
Name: LETA-ROL
The legal form of registy: Ltd
MBO: 2330555 Registered office: Radoboj Owner: Barbara Pospiš Date of registration: 21.01.2008. 17401 – Production of textile Code of occupation: nad textile products Number of employees: 1
Business bank: Privredna banka Zagreb
The guarantee amount: 6.200,00 € Results of crediting : The description of the Production of blinds and strip occupation: curtains By using the approved loan, LETA-ROL bought The credit purpose: Buying the equipmnet for the working machine and appropriate supporting production of blinds and strip equipment that is necessary for starting the curtains production of blinds and strip curtains. The direct result of credit is self-employment of the owner and employment of another person. 22 MAIN PROBLEMS
Lack of further financial support from the national nad regional level
Reducing the multiplier of LGF due to recession and world crisis – reducing the financial potential of LGF
23 Thank you for your attention!