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EUR70 MLN LOAN DEAL SIGNED WITH GERMAN BANK FOR CROATIAN RAILWAYS

ZAGREB, July 1 (Hina) - Croatia's finance ministry and Germany's state-owned bank Kreditanstalt fuer Wiederaufbau (KfW) signed a EUR70 million loan agreement on Tuesday which Croatian Railways will use to renovate and modernise its infrastructure.
ZAGREB, July 1 (Hina) - Croatia's finance ministry and Germany's state-owned bank Kreditanstalt fuer Wiederaufbau (KfW) signed a EUR70 million loan agreement on Tuesday which Croatian Railways will use to renovate and modernise its infrastructure. #L# Finance Minister Mato Crkvenac, who signed the agreement, said it was only part of a EUR180 million loan that was being negotiated. Interest is EURIBOR plus 1.3 percent, or 3.4 percent at present, which are very favourable conditions that infrastructure projects need, he said. The other signatory of the agreement, Peter Klaus, one of the KfW executive directors, said KfW had invested EUR613 million in a variety of projects in Croatia, starting in 1992, when the bank had loan-financed the purchase of five Lufthansa aircraft for Croatia Airlines. The bank views investing in industry and infrastructure important for Croatia and is interested in further cooperation in similar projects, Klaus said. (hina) ha sb

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