The loan will be repaid over 15 years with a grace period of four years and at an effective annual interest rate of 5.138 per cent, Finance Minister Ivan Suker explained.
Suker said that the loan would be taken out with a domestic bank and would not increase the country's external debt.
The government supported the Natural Disasters Bill and a draft decree regulating tourist residence taxes for 2007, under which tourist taxes would remain unchanged.
The government also backed a number of projects of relevance to the County and City of Zadar, including the construction of a ferry port and a fishing port, as well as a proposed programme for the cleaning and reconstruction of the network of canals in the eastern County of Vukovar, which would require some EUR6 million for the 2006-2008 period.