December 3 (SeeNews) - The Croatian government said on Thursday it decided to issue 120.9 million euro ($146.9 million) in state guarantees on loans by state-owned motorway operator Hrvatske Autoceste (HAC), which will go to cover outstanding liabilities to German lender KfW IPEX-Bank.
The state will guaranty a HAC loan of up to 120.9 million euro from Hrvatska Postanska Banka, Zagrebacka Banka (ZABA) and the Croatian Bank for Reconstruction and Development (HBOR), the government said in a statement.
The finacing will be used to repay two loans taken by HAC's unit Autocesta Rijeka-Zagreb (ARZ) from KfW IPEX-Bank.
The new loan from the three Croatian banks will mature in 12 years, with a fixed annual interest rate of 1.8%.
In September 2007, ARZ took two loans from KfW - of 140 million euro and 110 million euro. At the end of Decemeber, it is due to pay 45.5 million euro and 75.4 million euro, respectively, on the two loans.
Earlier this year, the government decided to merge ARZ into HAC, expecting to complete the procedure by the end of 2020. Following the completion of the merger, HAC will refinance the KfW loans.
($=0.8231 euro)