December 30 (SeeNews) - The Croatian government said it will issue state guarantees on a 70 million euro ($78 million) loan to local motorway operator Autocesta Rijeka-Zagreb (ARZ).
The 10-year loan will be extended by local lender Hrvatska Postanska Banka and the Croatian Bank for Reconstruction and Development (HBOR) to finance ARZ's 2019 business plan and part of its 2020 business plan, the government said in a statement on Friday.
The loan has a two-year grace period and carries an effective interest rate of 1.37%.
ARZ plans to invest 4.3 million kuna ($646,200/577,200 euro) this year and 8.5 million kuna in 2020. In addition, its spending on extraordinary maintenance works and services in 2019 is planned at 135 million kuna, the government said.
(1 euro = 7.44995 kuna)