Croatian Parliament on Friday confirmed three loan agreements with international financial institutions totaling approximately 660 million euros, aimed at addressing the crisis caused by the Covid-19 pandemic, post-earthquake recovery, and strengthening public health.
The Parliament has, in fact, passed laws to ratify two loan agreements with the International Bank for Reconstruction and Development (World Bank) and a Framework Agreement with the Council of Europe Development Bank.
The loan agreement for crisis response and recovery support is worth 276 million euros, while the one for the post-earthquake recovery project and strengthening public health preparedness is worth 184 million euros.
The terms for loans from the International Bank are very favorable – repayment over 14.5 years, with a grace period of five years, and a variable interest rate linked to the six-month Euribor plus a fixed margin of 0.75 percent, said Finance Minister Zdravko Marić.
The Minister states that the terms from the Framework Loan Agreement with the Council of Europe Development Bank for Project LD 2056 (2020) are also favorable. The repayment period is up to 12 years, with three years of grace, and a fixed interest rate of 0.24 percent or a variable rate based on the six-month Euribor plus a fixed margin of 0.36 percent.
This is a loan of 200 million euros, which provides funds to address emergencies in the context of the Covid-19 pandemic to overcome challenges in the health sector as well as to mitigate the economic shock.
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