Government issues guarantee for rail infrastructure company’s HRK 350mn loan

ZAGREB, Aug 2 – The government has adopted a decision on Croatia’s participation in the general and selective increase in capital of the International Bank for Reconstruction and Development, as well as a decision to launch procedures for Croatia to become a member of the Asian Infrastructure Investment Bank, and also issued a guarantee for a HRK 350 million loan to be taken by the HZ Infrastruktura rail company.  

Croatia will inject US$ 8.2 million into the International Bank for Reconstruction and Development, in line with its share in the bank’s equity, while potential liabilities amount to $48.5 million, which will be paid over the next 5 years, Finance Minister Zdravko Maric explained.

Croatia will apply for membership in the Asian Infrastructure Investment Bank.

“We’ve been offered the opportunity of a maximum number of shares for a country that is a non-regional members and that is 50 shares. The effective deposit is $1 million and the potential liability an additional $4 million,” said Maric.

HZ Infrastruktura was given consent and a state guarantee to take a HRK 350 million loan at the OTP Bank to finance an upgrade of railway infrastructure. OTP has offered the loan with a fixed interest rate of 1.67% and repayment period of 10 years, with 3 years’ grace.

(Source: Hina)

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