Government approves guarantee to ARZ motorway operator for €70m loan

The Croatian government on Friday approved a state guarantee for a €70 million loan to the operator of the Rijeka-Zagreb motorway ARZ.

The consent was given for the loan from the Croatian postal bank HPB and the Croatian Bank for Reconstruction and Development (HBOR) to finance the company's business plan for 2019 and part of the business plan for 2020.

The loan is repayable over 10 years, with a grace period of 2 years, in 32 monthly instalments, the first of which falls due on 31 March 2022 and the last on 31 December 2029. The interest rate is 1.37 percent.

In 2019, ARZ plans to invest a total of HRK 4.3 million and spend HRK 135.2 million on works and emergency maintenance services. Investment in 2020 is projected at HRK 8.5 million.

The government also decided to set aside HRK 25 million in the budget for a nationwide car insurance policy against damage resulting from cars hitting wildlife.