EC Loan To Romania To Be Granted In Max 5 Tranches In 3 Yrs

According to the agreement between the two parts, whose clauses are presented in an official document obtained by MEDIAFAX, the European Commission grants Romania an average-term loan of maximum EUR5 billion, with maximum 7-year average maturity.

Romania will open a special account at the central bank BNR, in order to be able to administrate the loan on average-term.

Romania agreed end-March with the International Monetary Fund, the European Union and other international institutions a EUR19.95 billion financial package, supported by a EUR12.95 billion IMF loan under a two-year standby arrangement.

The Executive Board of the IMF approved Monday a two-year EUR12.9 billion stand-by arrangement for Romania to support an economic program designed by the Romanian authorities.

The first EUR5 billion from the IMF has already entered BNR’s accounts.

The first tranche of the loan from the Commission, worth EUR1.5 billion, will be released early July, while the second tranche will be available at the end of the year, Finance Ministry Gheorghe Pogea said.

The interest rate for Romania’s EUR5 billion loan from the European Commission sets at 3% per year, compared with interest rates between 11.5% and 12% for state bonds on the domestic market, Pogea added.