Romania Gets EUR300M In WB Money – Treasury Head

„I can confirm that EUR300 million from the World Bank’s first loan for development policies is in the Treasury’s account at the central bank,” Andrei said.

The funds are aimed at development policies and were approved by the World Bank’s board in July. The loan matures in 14 years and has a grace period of 13 and a half years.

World Bank officials previously told MEDIAFAX the money was wired to the Romanian Treasury on Tuesday.

The EUR1 billion from the World Bank is part of a larger financial aid package Romania had to secure in the spring to cope with the deepening recession. The bailout amounts to EUR19.95 billion and includes funds from the International Monetary Fund, the European Commission, and other international lenders.

Romania has already received approximately EUR7 billion of the IMF money and is set to get another EUR1.5 billion in December, pending a second quarterly review from the Fund’s officials.

In addition, the European Commission granted Romania EUR1.5 billion at the end of July, with a second disbursement scheduled to arrive by the yearend.

However, the recent collapse of Romania’s minority government has plunged the country into political crisis, raising doubts about the country’s ability to meet the requirements attached to the IMF-led financial package.

The World Bank and the IMF have both announced their assessment missions will arrive in Romania only after a new government is in place and analysts believe the international institutions may delay additional disbursements. The IMF said in a statement that the political upheaval in Romania doesn’t jeopardize the financial agreement.