Background information

At the session held on July 2, 2020, the Government of the Republic of Croatia adopted the Program for the Granting of State Aid to the Maritime, Transport, Transport Infrastructure and Related Activities Sector in the current COVID-19 pandemic, approved by the European Commission on 30 June 2020, and in accordance with the Commission Communication - Temporary Framework for state aid measures to support the economy in the current COVID-19 pandemic, of 19 March 2020 and its amendments of 3 April 2020 and 8 May 2020.

The state aid instrument regulated by this Program is a state guarantee for new loans of entrepreneurs with commercial banks and the Croatian Bank for Reconstruction and Development. The emphasis is on measures aimed at ensuring liquidity, providing access to finance for the functioning of these sectors and ensuring transport connectivity and smooth traffic - both within the Republic of Croatia and abroad  - during and after the end of the COVID-19 pandemic as well as creating conditions for faster recovery from current crises.

The responsible institution is the Ministry of the Sea, Transport and Infrastructure, while the implementing bodies are the Croatian Bank for Reconstruction and Development and the Croatian Agency for Small Business, Innovation and Investments.

Content of measure

The program applies to the maritime, transport, transport infrastructure and economic activities related to construction, technical improvement, traffic-technical modernization of waterways, technical maintenance and training of waterways and navigation safety facilities (i.e. NACE 42.91Construction of water structures; 49.10 Railway transport services of passengers, intercity; 49.20.Railway freight transport; 49.31Urban and suburban passenger land transport; 49.39 Other land transport (excluding taxi service); 50.10 Sea and coastal passenger water transport; 50.30 Inland passenger water transport; 50.40Transport of goods by inland waterways; 51.10 Passenger air transport; 51.21 Air transport of goods; 50.20 Sea and coastal freight water transport; 52.10 Storage of goods; 52.2 Transport service activities; 77.34 Renting and leasing of water transport equipment; 79.11 Travel agency activities (related to nautical transport); 79.12 Activity of tour operators (tour operators) if they are related to nautical traffic; 93.29 Nautical tourism ports).

Eligible beneficiaries of support under this program are classified as small, medium and large enterprises according to the categories of enterprises. The aid can be in the form of guarantees ('limited aid amounts')  and in the form of loan guarantees ('support in the form of loan guarantees'). The aid in the form of guarantees shall be directly targeted at the eligible beneficiaries who are facing a sudden lack of liquidity, and not to credit them or other financial institutions that are lenders for which guarantees are granted.

The total amount of state guarantees, which will be approved by the Croatian Bank for Reconstruction and Development (HBOR) and the Croatian Agency for Small Business, Innovation and Investment (HAMAG-BICRO), amounts to HRK 600 million (€80 million) i.e. in the form of 'limited aid amounts'  HRK 200 million (€26.7 million), and in the form of loan guarantees HRK 400 million (€53.3 million).

Use of measure

Not yet known.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Sector specific set of companies	Does not apply to citizens

Actors and funding

Actors	Funding
National government	European Funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement as case not in social partner domain	No involvement
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: N/A

Involvement

Due to the nature of the measure, social partners were not involved.

Views and reactions

Social partners until now have not commented on the measure.

Sectors and occupations

This case is not occupation-specific.

Sources

• 02 July 2020: Odluka o usvajanju Programa dodjele državnih potpora sektoru mora, prometa, prometne infrastrukture i povezanim djelatnostima u aktualnoj pandemiji COVID-a 19 (narodne-novine.nn.hr)
• 03 July 2020: Decision on the adoption of the Program for the allocation of state aid to the maritime sector, transport, transport infrastructure and related activities in the current COVID Decision on the adoption of the Program for the allocation of state aid to the maritime sector, transport, transport infrastructure and related activities in the current COVID pandemic 19 (narodne-novine.nn.hr)
• 18 January 2021: Dopune programa dodjele državnih potpora sektoru mora i povezanim djelatnostima (Amendments to Decision to provide state aid for maritime transport and related activities) (narodne-novine.nn.hr)