Regulatory Alerts2021-04-16
Official Position of Hanfa on Leasing Companies Granting Loans to Employees
The Croatian Financial Services Supervisory Agency (Hanfa) clarifies that leasing companies are not absolutely prohibited from granting loans to their employees, provided such activity does not constitute their registered business operations. The regulator mandates that these loans must not be offered to the public, must be granted on terms more favorable than market rates without profit motive, and must not jeopardize the company's financial stability or regulatory compliance. Additionally, leasing companies must ensure adherence to applicable tax regulations and international accounting standards regarding transactions with related parties.
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