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World Bank Approves 1st Loan Worth EUR300M To Romania

The World Bank’s Board approved Thursday a first loan worth EUR300 million to Romania, granted to help it mitigate the global economic crisis and resume growth and EU convergence.
World Bank Approves 1st Loan Worth EUR300M To Romania
17 iul. 2009, 16:35, English

The loan approved Friday is the first of a proposed three-part Development Policy Loan, or DPL, program which could total EUR1 billion. The International Bank for Reconstruction and Development IBRD loan made to Romania will have a 14-year maturity and 13.5- year grace period.

“This loan supports the implementation of the Government’s program aiming to strengthen public expenditure management, to cushion the impact of the crisis on the poor and vulnerable, and to minimize risks of a domestic financial sector crisis by addressing current and potential vulnerabilities,” the World Bank’s country manager for Romania Benoit Blarel said.

The DPL program mainly focuses on public financial management, the social sectors and the financial sector.

Romania and the International Monetary Fund, or IMF, signed in May a EUR12.95 billion two-year stand-by arrangement, as part of a EUR19.95 billion financial support package that also includes funds from the European Commission, the World Bank, the European Investment Bank, and the European Bank for Reconstruction and Development.