State secures major loan for railway development

The outgoing Czech government has signed a loan agreement with the European Investment Bank, securing tens of billions of crowns for railway development, Czech Television reported citing government sources.

The loan will fund track modernization, improved safety systems, and part of the construction of the Prague ring road. Five billion crowns are allocated for the ring road, with potential for that amount to double in the future. The interest rate of the loan has not been disclosed; the repayment period is 18 years.