May 22 (SeeNews) - The Croatian government said it has launched procedures to sign two loan agreements worth a combined 476 million euro ($519 million) with the International Bank for Reconstruction and Development (IBRD), part of the World Bank Group.
One of the loans, worth 200 million euro, will support Zagreb's recovery from a recent earthquake and will help strengthen the national public health system amid the ongoing Covid-19 pandemic, the government said in a statement on Thursday. The loan will mature in 2035.
A 5.3-magnitude earthquake hit Zagreb on March 22, leaving behind considerable material damage and killing one person.
The reconstruction works in the aftermath of the earthquake are estimated to cost 13 billion euro, prime minister Andrej Plenkovic said in the statement.
A second IBRD loan, of 275.9 million euro, is intended to help mitigate the negative impact of the coronavirus crisis and the recovery of the domestic economy, the government said.
The credit will provide a financial injection to the state budget in July and August in support of the most vulnerable population, the payment of salaries, and liquidity strengthening at crisis-hit companies. It will mature in 2034.
($=0.9164 euro)