The delegations of the EBRD and EIB arrived in Zagreb on Monday to the final negotiations with the Croatian Motorways (HAC), so that the company would try to provide billions of kunas in favorable loans required for settling the due debts and possibly construction projects.

The negotiations will take a whole week and the delegations will inspect the motorway sections under construction, before deciding on the amount of loans to be granted to HAC. HAC has HRK 3.3bn in loans that mature this year. It also needs HRK 900m to cover the planned deficit in 2010.

Another HRK 8.5bn worth of loans will mature by the end of 2012. HAC confirmed the key objective is to replace unfavorable loans taken in recent years with cheaper and longer loans.

HAC has already signed agreements for new motorway sections, but has no money for those projects.

Even if EIB and EBRD grant loans, the existing agreements will have to be terminated and new tenders will be required. Contractors have already announced lawsuits in that case.