The European Investment Bank (EIB) has approved a EUR 130 million loan to the Republic of Macedonia for construction Corridor 10 highway section Demir Kapija-Smokvica.

The Finance Minister said in Wednesday's press release that the funds have been approved under favorable conditions, with a 1.3% interest rate, and a 15-year repayment period, including a 5-year grace period.

The entire project is worth about EUR 245 million, funded by the EIB, EU's IPA funds (EUR 45 million), European Bank for Reconstruction and Development-EBRD (EUR 107 million) and the Macedonian Government (EUR 6 million).

"Construction and development of the main pan-European corridors passing tMemorandum on project for modernization of state administration signed through our country is high on the Government's agenda", reads the press release.