Zagreb, 23 December 2009 - The Croatian Competition Agency (CCA) set a new base rate of 7.33 % and a new temporary reference rate which now amounts to 4.98 % and which will apply as of 1 January 2010.

The reference rate is applied as a proxy for the market rate and for calculating present values to measure the grant equivalent of aid calculated on the basis of 364-day-treasury bills interest rate of the Ministry of Finance of the Republic of Croatia on the basis of yields recorded in September, October and November this year. The CCA decreased the base reference rate by 32 % in line with the adopted State aid rules applicable on financing of undertakings in the circumstances of the current financial and economic crises. Concretely, soft loans granted by aid providers such as HBOR to undertakings under the newly set temporary reference rate are thus in compliance of the State Aid Act in force, provided that they are authorised by the CCA.

An update will be made each time the average rate, calculated over the previous three months, deviates by more than 15 % from the rate in force.