The Croatian government has approved and guaranteed for HZ Infrastruktura two loans worth HRK 1.25 billion (EUR 163 million, to modernise and build railway infrastructure and for severance payments.
A HRK 1 billion loan from Erste&Steiermaerkische Bank, Societe Generale-Splitska Banka and OTP Bank will be used to finance the rehabilitation of four railway lines, with a total lenght of 160 km. The loan would be repaid six years, and the interest rate would be linked to six-month EURIBOR plus a fixed margin of 4.60% per annum.
The second loan, amounting to HRK 250 million from Istarska Kreditna Banka Umag, OTP, and Privredna Banka Zagreb (PBZ) will be used for for severance payments in line with the company’s restructuring programme and business plan for 2014 – 2018. The HRK 250 million loan will be over a period of four years, with a six-month EURIBOR interest rate plus a fixed margin of 5.35% annually.