Finacial cooperation agreement signed between Croatian and German Government

Deputy Prime Minister of the Government of the Republic of Croatia and Minister of Finance, Mr. Ivan Šuker and the Ambassador of the Government of the Federal Republic of Germany, Mr. Bernd Fischer, PhD, signed the Agreement on Financial Cooperation at the Ministry of Finance today.

The Government of the Federal Republic of Germany, according to this Agreement, shall allocate to the Government of the Republic of Croatia a favourable loan within the scope of public cooperation in the field of development, up to the amount of EUR 18 million, at a reduced interest rate, for the purpose of financing the third phase of the Project of Water-Supply and Wastewater Disposal in Croatia.

Specific loan terms will be determined by a separate loan agreement, which is to be signed on the basis of this framework Agreement between HBOR and KfW, German Development Bank from Frankfurt am Main. The first two phases of the mentioned project were financed earlier by approved loans from the Stability Pact funds and from German Budget funds.

The loan that is being made available to the Republic of Croatia by this Agreement, will contribute to the achievement of European standards in public water supply and drainage and in wastewater purification, which is also one of the Croatian strategic priorities.