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LOAN AGREEMENT SIGNED FOR COMPLETION OF RIJEKA-ZAGREB MOTORWAY

RIJEKA-ZAGREB MOTORWAY Rijeka, June 24 (Hina) - Representatives of the European Investment Bank (EIB) and the "Rijeka-Zagreb" motorway company on Monday signed a loan agreement worth 60 million euros for the completion of the construction of the 146.5-kilometre-long Rijeka-Zagreb motorway.
Rijeka, June 24 (Hina) - Representatives of the European Investment Bank (EIB) and the "Rijeka-Zagreb" motorway company on Monday signed a loan agreement worth 60 million euros for the completion of the construction of the 146.5-kilometre-long Rijeka-Zagreb motorway. #L# The loan will be used for the construction of the Vrbovsko- Bosiljevo 2 (13.57 kilometres long) and Bosiljevo 2 - Vukova Gorica (7.81 kms) sections. The construction of the entire motorway should be done by June 2004. So far, 104.4 kilometres have been built. The variable interest rate of the loan can be no higher than Euribor plus 0.40. The grace period is five and a half years, and the loan should be paid back within 20 years. The agreement was signed by Zoran Klaric, the chairman of the company's board of directors, and by Ewald Nowotny, the EIB Vice President, in the Croatian seaport of Rijeka. After this agreement, Mr. Nowotny and a Croatian Deputy Prime Minister, Slavko Linic, signed collateral for the loan. The conclusion of the contract with the EIB is a part of an arrangement between the Croatian company and the European Bank for Reconstruction and Development (EBRD) on completion of the building of the said section. Last October the Rijeka-Zagreb motorway company and the EBRD signed a contract on a 60-million-euro loan. The grace period for this loan ends in 2005, and it should be paid back within 18 years. The Bosiljevo 2 interchange, which should be built by next year, connects the Zagreb-Rijeka motorway with another motorway "Zagreb- Split-Dubrovnik". (hina) ms

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