The landfill in Zivinice, some 100 km north of Sarajevo, will be used by the town of Zivinice and the adjacent municipalities of Banovici and Kladanj, the Federation government said in a press release.
Local media reported that the loan has a 15-year period to maturity with a grace period of three years.
The Federation is one of two autonomous entities that form Bosnia and Herzegovina. The other one is the Serb Republic.
($ = 0.896883 euro)