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WB May Approve 2nd EUR360M Loan To Romania By Yr-end – MOF

The World Bank may approve a second EUR360 million loan of a larger EUR1 billion financial package aimed at development policies in Romania by the end of the year, the country's Finance Ministry said in a statement Thursday.
WB May Approve 2nd EUR360M Loan To Romania By Yr-end - MOF
22 oct. 2009, 14:59, English

Romania received the first EUR300 million loan of the package on Wednesday, while the second and the third loans will become available next year, the ministry said.

„The three loans from the WB (…) are attached to a package of reforms in the public sector, including in education and healthcare, reforms in the social protection field and in the financial sector,” the statement noted.

The EUR1 billion financing from the World Bank is part of the EUR20 billion international aid package Romania secured in the spring in an attempt to cushion the effects of the economic downturn.

The bailout includes a EUR12.95 billion standby loan from the International Monetary Fund, as well as funds from the European Commission, and other foreign 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 EC granted Romania EUR1.5 billion at the end of July, with a second disbursement scheduled to arrive by the yearend.

However, both the IMF and the WB announced they will delay sending valuation missions to Romania on the backdrop of the recent political crisis, which left the country without a working government after the Democrat Liberals failed a no-confidence vote in parliament.