The European Bank for Reconstruction and Development (EBRD) has approved a loan of EUR 250 million to the Croatian motorways operator Hrvatske Autoceste (HAC), the bank's Zagreb office confirmed on Friday.
EBRD says that a tranche in the amount of EUR 200 million will be used to refinance HAC's current loan liabilities at much more favourable terms of a 1% Euribor rate and for a period of 15 years, which will replace current unfavourable financing sources with an interest rate of 5% and a period of 5 to 7 years. The remaining EUR 50 million will be used later and the period of use is two years.
Last December the government approved a state guarantee for the EBRD loan in the amount of 200 million euro for a period of 15 years to refinance HAC's existing loan for this year.
Securing a loan from the EBRD requires a long process as prescribed by the Law on International Agreements because agreements that oblige Croatia financially need to be confirmed by parliament.
A total of EUR 581 million in loan principal and interest matures this year, and HAC has sufficient funds to settle its liabilities falling due until April 2016.