April 9 (SeeNews) - The Croatian government said it decided to issue state guarantees on a planned 400 million kuna ($62.8 million/52.8 million euro) loan by state-owned railway infrastructure operator HZ Infrastruktura from the Croatian Bank for Reconstruction and Development (HBOR) for railway infrastructure rehabilitation.
The loan will finance the reconstruction and modernisation of railways for international and regional transport and related online activities, the government said in a statement on Thursday, quoting transport minister Oleg Butkovic as saying.
The loan has to be used within 12 months after signing the contract. It has a grace period of two years from the expiration of the term of use. The loan carries a fixed interest rate of 1.65% and will be repaid in 14 consecutive six-month installments.
HZ Infrastruktura's debt totalled 1.46 billion kuna at of January, the government added.
(1 euro = 7.5766 kuna)