In order to make an assessment of the suitability of property to be mortgaged, the following requirements must be meet:
- Land Registry Certificate submitted with the issuance date not older than 1 month
- The property in question to be owned either by loan beneficiary or a warrantor
- The property value assessment to be made by an authorized court expert of corresponding profession
The property value assessment must be detailed in regard to:
- Property construction/building year / chattel manufacturing year
- Identification of cadastre plot, Land Registry Entry Certificate and cadastre municipality certificate in which the building/facility was constructed
- Identification of equipment manufacturer
- Depreciation rates of the asset /property in question
- Description of the overall condition, state, usability and a degree of completion of the asset in question
- All other relevant information deemed to be useful for a comprehensive assessment and appraisal of the market value of the property / chattel in question may be submitted
It is necessary for the value of real property to be at least 50% greater than the amount of the mortgage secured debt, accompanied by a realistic assessment of authorized court subject-matter expert. The chattel should have the value at least 100% greater than the amount of the lien secured debt together with a realistic assessment of authorized court subject-matter expert. The said values are a minimum, while the Credit Board reserves the right to require a greater value of the mortgage/collateral.
The RB FBiH applies the method of loan repayment in equal installments of the capital amount, whereas the interest is calculated on the balance of the loan capital. Thus, the annuity – the sum of repayment of the interest and the capital amount over the repayment period are reduced by the time flow, i.e. with each repaid installment of the capital amount. (LINK – Repayment Plan Model)
Grace period is included in the time period approved for loan repayment. For example, if a loan is approved for the period of 24 months, with 6 months of grace period, the company in question shall pay only interest on the loan for 6 months, and repay the capital in 18 months.
Grace period is a time period in which the loan beneficiary pays an interest rate only for the funds (loan instruments) that are being used. A loan with grace period may be approved for projects requiring certain implementation time (i.e. purchasing equipment with the loan funds); debt collection time, time needed for production materials and stock supplies to be either placed or paid for, etc. Grace period must be justified in the project and cash-flow projection.
Grace period is the period in which the loan is the most expensive since the interest is calculated on the capital amount of the loan. The longer grace period – the more expensive loan at the end of the day. That’s why there is no reason to request grace period for which there is no justification in the very business activities.
However, too short a grace period is also a danger for the overall project implementation, since the requirement to repay the capital amount is due before a new investment generates new income.
Thus, it is of utmost importance for the company owner; person in charge of production/manufacturing activities; consultant working on the business plan and investment program and bank credit analyst to agree on the grace period needed when determining the cash-flow projection and credit proposal.
THE LIBOR/EURIBOR VALUES AS PER THE BELLOW TIME- PERIOD:
- 01.11.1998. – 30.04.1999. 3,50%
- 01.05.1999. – 31.10.1999. 2,68%
- 01.11.1999. – 30.04.2000. 3,75%
- 01.05.2000. – 31.10.2000. 4,57%
- 01.11.2000. – 30.04.2001. 5,27%
- 01.05.2001. – 31.10.2001. 4,73%
- 01.11.2001. – 30.04.2002. 3,35%
- 01.05.2002. – 31.10.2002. 3,49%
- 01.11.2002. – 30.04.2003. 3,17%
- 01.05.2003. – 31.10.2003. 2,46%
- 01.11.2003. – 30.04.2004. 2,21%
- 01.05.2004. – 31.10.2004. 2,10%
- 01.11.2004. – 30.04.2005. 2,20%
- 01.05.2005. – 31.10.2005. 2,15%
- 01.11.2005. – 30.04.2006. 2,38%
- 01.05.2006. – 31.10.2006. 3,03%
- 01.11.2006. – 30.04.2007. 3,70%
- 01.05.2007. – 31.10.2007. 4,14%
- 01.11.2007. – 30.04.2008. 4,62%
- 01.05.2008. – 31.10.2008. 4,88%
- 01.11.2008. – 30.04.2009. 4,80%
- 01.05.2009. – 31.10.2009. 1,56%
- 01.11.2009. – 30.04.2010. 1,00 %