Skopje, 26th December 2011 (MIA) – Ministry of Finance extended loan in the amount of Denar 24.57 million to the Municipality of Bosilovo and a loan in the amount of Denar 21 million to the Municipality of Rankovce for construction, reconstruction and asphalting streets.

As Ministry of Finance announced, Municipality of Bosilovo will use the funds for construction of two local streets in the villages of Petralinci and Radovo and part of a local road that connects the villages of Monospitovo and Bansko. Streets, i.e. roads, are 2,462 meters long in total. Streets in the villages of Petralinci and Radovo are unpaved, which do not provide the minimum conditions for a safe and normal traffic, due to which it is envisaged for they to be built.

Municipality of Rankovce will construct local roads in the municipality with the loan extended. The project envisages construction of seven local streets in Rankovce, Ginovci and Petralica. All local streets are residential streets, which connect most of an urban block in the respective settlements. Like in the Municipality of Bosilovo, streets in the municipality of Rankovce are is an very bad condition. They are tamped unpaved streets, with significantly deformed shape and non-standard horizontal and vertical elements.

Such streets do not even meet the minimum traffic standards and norms and are a serious problem to safety of all participants in the traffic, Ministry of Finance press release stated.

Loan terms and conditions are exceptionally favourable, with an interest rate of six-month LIBOR with a variable spread, being 0.59% at the moment. Repayment period is 13 years, with a 3-year grace period. Financial resources are part of the “Municipal Services Improvement” Project, under which Government of the Republic of Macedonia provided US$ 50 million from the World Bank as assistance to municipalities. So far, 29 agreements with 29 municipalities have been concluded within the Project.

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