Banks to loan 1.8 bln kuna to refinance road companies' debt

NEWS 28.03.2018 13:34
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Source: N1

A 1.8 billion kuna (€242 million) bank loan for financing the restructuring of state-owned companies will be discussed at the government's session on Thursday, Transport Minister, Oleg Butković, told reporters on Wednesday.

A 1.8 billion kuna (242 million) bank loan to be used to finance the restructuring of state-owned motorway companies will be discussed at the government’s session on Thursday, Transport Minister, Oleg Butković, told reporters on Wednesday.

The loan is expected to complete the second phase of government’s refinancing of debt accumulated by road management companies, after a 1.25 billion bond issue in November 2017.

“The most important thing here is that the government has abandoned plans for monetisation and privatisation of motorways, and that we have managed – in cooperation with the World Bank – to devise a restructuring model which will make the system sustainable and able to finance itself. With these two phases, we have managed to re-finance two thirds of the debt, and have saved 300 million kuna in a single year. On the other hand, there will be a complete restructuring of (motorway management company) HAC,” Butković told reporters.

(1 = 7.44 kuna)