GOVERNMENT: Croatian Motorways Restructuring Loan Approval

ButkovicLPJ Issue 172, 14 March 2016

The government approved the plan for a €250 million loan from the European Bank for Reconstruction and Development (EBRD) to finance the restructuring of the Croatian Motorways (HAC).

The loan is for a period of 15 years, with a two-year grace period on principal repayment, the 6-month Euro Interbank Offered Rate (EURIBOR) and the one percent margin with the possibility a fixed interest rate. Roughly €200 million will be used to finance the restructuring of HAC, as well as the closing of existing overdue commercial loans.

The remaining sum will be used for restructuring of the HAC-ONC company in charge of the maintenance of motorways and toll collection.

Proposed by: Ministry of Maritime Affairs, Transport and Infrastructure

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