SARAJEVO (Bosnia and Herzegovina), April 17 (SeeNews) – Bosnia's government said it has approved two draft loan agreements with the OPEC Fund for International Development intended to finance construction works on a section of European transport Corridor Vc.

The first loan amounts to $27.2 million (21.9 million euro) and will fund component A of the Nemila - Donja Gracanica section of Corridor Vc, while the second totals 24.3 million euro and is planned to go towards the construction of component B of the same section, the council of ministers said following a session on Monday.

The 17.65-kilometre Nemila - Donja Gracanica includes subsections Nemila – Vranduk, 5.7 km, Vranduk - Ponirak, 5.07 km, and Ponirak - Donja Gracanica, 6.9 km.

The repayment period on the dollar denominated loan is 20 years with a five-year grace period, while the second loan is due in 18 years and has a four-year grace period.

Both loans are extended to Bosnia's Federation, one of the two entities that form Bosnia and Herzegovina.

The loan agreements have been sent to Bosnia's presidency for approval.

Pan-European Corridor Vc connects the port of Ploce in Croatia with Hungarian capital Budapest via Bosnia.

($=0.8066 euro)