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Wed 24 Dec 2008 04:39 PM

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Kuwait signs up for Bosnian road deal

Kuwait Fund for Economic Development initials agreement for loan to build highway linking Bulgaria.

The Kuwait Fund for Economic Development initialled on Wednesday a deal with Bosnia on a 30 million euro ($42 million) loan to build a section of a north-to-south highway.

"The loan that will be extended under soft terms with a 25 years repayment and five years grace period and an interest of 2 percent and should become operational early next year", Hmoud Elenenzi, the Fund's legal adviser, told a news conference.

The funds will help the construction of a complex 2.5 kilometre section of a strategic transport artery passing through Bosnia and linking Budapest with the Croatian port of Ploce. Bosnia has around 30 km of highways.

The Kuwait Find for Economic Development has so far disbursed around $50 million in three infrastructure projects in the Balkan country, Hmoud said. (Reuters)

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