(Photo: Robert Schmiegelt/DPA/PIXSELL) (Photo: Robert Schmiegelt/DPA/PIXSELL)

The bond was issued on the domestic market in the amount of 3.5 billion kuna until 2024 and 7.5 billion until 2034, with a yield of 0.36 percent and interest rate of 0.25 percent. The prime minister said the terms were certainly the most favourable ever issued by Croatia.

The planned saving on interest alone is some 340 million kuna annually, and is expected to be achieved by the refinancing of previous borrowing by the new bond.

The prime minister said that it showed that the government was pursuing a responsible fiscal policy recognised by financial institutions around the world and on global financial markets.

The bond issue has been arranged by Erste, Privredna, Raiffeisen and Zagrebacka Banka.

Source: HINA