WB To Lend Romania EUR750M For Healthcare, Social Assistance Reform

World Bank's senior economist Sudharshan Canagarajah said Thursday the current state budget aid program will end after the third loan for development policies, amounting to EUR400 million, will be disbursed.

He added the institution and the Romanian Government hold talks on implementing two other projects.

Catalina Pauna, WB Bucharest office chief economist, said the two projects target the healthcare and social assistance sectors and will span several years.

Canagarajah said funds for the social assistance sector amount to EUR500 million and to EUR250 million for the healthcare sector. He stressed that the date when the funds will be disbursed is not yet known as the country must first meet certain preconditions.

A EUR20 billion aid package for Romania, which consists of funds from the IMF, the WB, the European Union and other financial institutions, includes funds granted by the WB for development policies, amounting to EUR1 billion.

In October 2009, Romania received a first tranche of the development policy loan, worth EUR300 million.

End-January, the WB approved the disbursement of a second tranche in the amount of EUR300 million, which was supposed to be released in the first half of last year, but was postponed several times as Romania did not meet the set conditions.

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