June 13 (SeeNews) - The Croatian government said on Thursday it gave preliminary consent to state-owned passenger railway company HZ Putnicki Prijevoz (HZPP) to borrow overall 24 million euro ($25.9 million) from Switzerland-based European Company for the Financing of Railroad Rolling Stock (EUROFIMA).
A loan of 10 million euro will be used to finance renovation of locomotives and trains, while a loan of 14 million euro will go towards repair of facilities for rolling stock maintenance, transport minister Oleg Butkovic told a weekly cabinet meeting as seen in a video recording published on Youtube.
The loans will be repaid after 15 years and have a fixed interest rate.
The government will provide guarantees for the loans.
($ = 0.926 euro)