Romania borrows EUR 4.1 bln from EU for employment support

Romania's president Klaus Iohannis promulgated the draft law by which the Government contracts a EUR 4.1 billion soft loan from the European Union to finance the measures to support the employment during the crisis consisting of technical unemployment and subsidies paid to companies keeping the workforce employed. Romania got this loan under the EU's SURE instrument, News.ro reported.

On November 22, 2020, the Chamber of Deputies adopted the draft, as the first chamber notified, and the Senate voted it on February 15 this year.

The EUR 4.1 bln will be disbursed in tranches over an 18-month period that ends in March 2022, under a calendar to be agreed over by the Government and the EU.

The average maturity of the loan is 15 years. Romania will pay the same interest rate as the one paid by the European Commission when issuing the bonds, plus the supplementary related expenditures incurred by the Commission.

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