The European Investment Bank (EIB) has issued a €50mn loan to help upgrade transport infrastructure in the Bulgarian capital city.

The finance will support the construction and upgrade of 22 road schemes totalling 56km and the modernisation of 7.6km of train tracks. As a result, major bottlenecks will be alleviated and traffic flows enhanced.

The EIB’s vice-president for lending in Bulgaria Mihai Tanasescu says that the upgrade of infrastructure conducive to trade will have a “substantial positive impact on the city’s environment, by reducing pollution”.

This is the fourth loan the EIB has made to Sofia, with total volumes of €250mn. The biggest transaction to date was a €105mn loan to extend the city’s metro line in 2008.