Sarajevo canton takes 13 mln euro loan from Bosnia's Federation Development Bank

"The loan is secured under very favorable conditions with a fixed annual interest rate of 2.5%, and a 12-year maturity, including a one-year grace period", Sarajevo canton's finance minister Amel Kovacevic said in a ministry statement published on Friday.

The loan will finance the settling of property and legal issues for the construction of city transport links, a clinical centre project, as well as various academy and public school projects, among others, on the territory of the canton.

The Federation is one of two autonomous entities forming Bosnia and Herzegovina. The other one is the Serb Republic.

(1 euro = 195583 marka)