The Croatian Government approved the state guarantee to state-owned power utility HEP in the amount of 880 million euros for the purchase of natural gas and other energy resources.
The state guarantee is issued for two loans obtained from Erste Bank, OTP Bank, HPB, PBZ, Croatian Bank for Reconstruction and Development (HBOR) and Zagrebacka Banka. The first loan, in the amount of 400 million euros, is intended for the purchase of 270.83 million cubic meters of gas for Okoli gas storage. The second loan is in the amount of 600 million euros, but the guarantees cover only 480 million, and will be used for electricity, gas and coal purchases.
Although the Government approved the use of funds for coal purchases, banks insisted that the proceeds of the second loan should not be used for direct coal purchases or financing projects involving coal and nuclear energy.
