Gov't allows motorway operator to borrow EUR 200M from EBRD

The Croatian government on Thursday decided to postpone the implementation of a new classification of accounts under the Accounting Act from early 2016 to 2017, and green-lighted a state guarantee for a EUR 200-million loan to be taken by the Croatian state motorway operator (HAC) from the European Bank for Reconstruction and Development (EBRD).

In 2016, HAC is due to service a loan of 466 million euros plus 109 million in interest and the company cannot cover this sum from its own revenues. Therefore, EBRD has been asked to assist HAC in its efforts to repay its liabilities next year, and the EBRD loan is to be repaid through a period of 15 years.

Transport and Infrastructure Minister Sinisa Hajdas Doncic said that the interest rate on the EBRD loan was 1.027%, which would help refinance unfavourable liabilities, with some of loans with interest higher than 5%.

The minister explained that the loan would become operational next February , because loan contracts with EBRD must go through procedures in the government twice and in the parliament once.

The government okayed the plan of the City of Zagreb to take a 190-million-kuna loan from Erste & Steiermaerkische Bank for funds to school and pre-school institutions and cultural and healthcare facilities.

The government decided to delay the implementation of the new classification of accounts from 1 January 2016 to 1 January 2017, in order to give a year-long period for adjustment to businesses, including the change of software programmes.

The government decided on reimbursing the costs incurred in the migrant crisis management, and to this end a little less that 7 million kuna would be distributed to the Interior Ministry, the National Protection and Rescue Service (DUZS) and the national stockpiles.

Since mid-September when the migrant crisis spilled over to Croatia, over 485,000 refugees have passed through Croatia.

Last update: Thu, 10/12/2015 - 12:49
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