October 7 (SeeNews) - Bosnia's government said it approved two draft agreements for taking 40 million euro ($47 million) worth of loans from the European Bank for Reconstruction and Development (EBRD) to ensure the stability of the country's financial sector and to finance a Sarajevo transport project.
Bosnia plans to take a 30 million euro loan from the EBRD to additionally strengthen the stability of its financial sector, the government said in a statement on Tuesday.
The funding will be managed by the Deposit Insurance Agency and extended under specially defined terms and conditions.
The loan will be repaid in eight years, including a five-year grace period, the statement reads, without providing details on the interest rate.
In addition, the government approved taking a 10 million euro loan from the EBRD to finance the purchase of new tram cars for Sarajevo, which will raise the public transport quality in the Bosnian capital and bring it in line with European environmental standards.
The loan will be repaid in 15 years, with a three-year grace period. Its final user is the Sarajevo canton.
The two approved draft credit agreements will be now sent for authorisation to the country's presidency.
($=0.8486 euro)