August 2 (SeeNews) - Croatia's government said it has decided to issue guarantees to railway infrastructure operator HZ Infrastruktura for taking out a 350 million kuna ($52.6 million/47.4 million euro) loan from the local unit of Hungary's OTP Bank.
The proceeds of the loan will be used to finance the renovation of railway infrastructure, the government said in a press release on Thursday after its regular meeting.
Finance minister Zdravko Maric said that HZ Infrastruktura has found the loan offer of Split-based OTP Banka to be the most favourable.
OTP Banka has offered the lowest interest rate of 1.67%, Maric said, adding the 10-year loan will have a three-year grace period.
(1 euro = 7.38291 kuna)