Romania signs EUR 15 mln loan contract under Recovery and Resilience Facility

Romania’s Ministry of Finance on November 27 sealed the Loan Agreement for the EUR 15 bln loan extended by the European Commission to the country under the Recovery and Resilience Facility.

Besides the EUR 15 bln loan, the country will also receive EUR 14 bln in grants under the same Facility.

The loan will be used to finance the state budget deficit and to refinance public debt based on budget expenditures made for the reforms provided for in the Recovery and Resilience Plan (PNRR).

The amounts will be made available in 10 instalments, based on the fulfilment by the Romanian side of the milestones and targets provided in the reforms and investments associated with the loan.

Each disbursement, including pre-financing, will have a 30-year tenant from the date drawn, of which a grace period of 10 years. Reimbursement will be made in equal instalments for the remaining period until maturity.

The 13% pre-financing (EUR 1.94 bln) will be disbursed after the Loan Agreement comes into force - which is, after the Ministry of Finance and the Ministry of Investments and European Projects sign a protocol that will establish the rights and obligations of the parties in applying the provisions of the Loan Agreement, including monitoring the achievement of milestones and targets and reporting required by the European Commission, minister of finance Adrian Caciu declared.

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