Government approves fresh loans for HAC motorway operator

ZAGREB, 21.05.2015.

The government on Thursday granted approval and guarantees to the national motorway operator HAC for two fresh loans in the total amount of 250 million euros to settle the company's immediate liabilities.

One loan is in the amount of 100 million euros and is to be repaid at a variable interest rate of six-month EURIBOR plus 3.69 percentage points, which on the date of offer (9 April) was 3.777% annually, while the effective annual interest rate is 4.21%.

The other loan is in the amount of 150 million euros and is to be repaid at a variable interest rate of six-month EURIBOR plus 3.64 percentage points, which on the date of offer (9 April) was 3.727% annually, while the effective annual interest rate is 4.11%.

Both loans are to be repaid over seven years with a grace period of two years.

The Minister of Maritime Affairs, Transport and Infrastructure, Sinisa Hajdas Doncic, said that HAC's total debt on 30 April was 30.4 billion kuna.

The government also approved increasing the equity of the HZ Cargo rail company by 974.9 million kuna, from the present 531 million to the total nominal amount of 1.5 billion kuna, whereby the government would acquire a stake in HZ Cargo that same nominal amount.

The government sent to parliament a bill ratifying a loan agreement with the European Investment Bank.

The agreement ensures a national contribution for co-financing of projects from EU structural and investment funds as part of the operational programme Competitiveness and Cohesion 2014 - 2020.

The total amount of the loan is 300 million euros and will be used for transport, energy, environment, health, research and development, social infrastructure, information and communication technology, and municipal reconstruction projects.

(Hina)