Romania To Get EUR300M From WB In ‘Few Days’ – Official

The loan targets development policies and was approved by the bank’s board in July. It matures in 14 years and has a grace period of 13 and a half years.

„We’ve met all terms related to the first EUR300 million loan from the World Bank a while ago (…) and the money will arrive in a few days. The second loan out of the total EUR1 billion amount is scheduled for the first half of next year,” Dragoi said.

The EUR1 billion loan is part of a larger financial aid package Romania had to secure in 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, the World Bank, the European Bank for Reconstruction and Development, the European Investment Bank and the International Finance Corporation.

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.

However, the IMF said in a statement that the political upheaval in Romania doesn’t jeopardize the financial agreement.