RO gets EUR 800 mln soft loans from EC to mitigate crisis’ impact on labor market
Romania will be earmarked around EUR 800 million out of the EUR 17 billion recently borrowed by the European Commission to finance the SURE program, aiming to mitigate the crisis' effects on the labor market, Profit.ro reported.
Romania can use the funds to finance expenditures (or cover past expenses) related to the technical unemployment and the subsidies paid to companies hiring workforce immediately after the interruption of their operations caused by restrictions or effects of the crisis.
Romania was allotted EUR 4.1 bln out of the whole program's EUR 87.8 bln requested by all 17 EU countries enrolled in the program.
The European Commission raised the EUR 17 bln at an interest rate of -0.24% for 10-year bonds and 0.13% for 20-year bonds.
Proportionately, Romania could receive EUR 470 mln to be repaid in ten years at the negative interest rate and EUR 330 mln to be repaid in 20 years.
For comparison, Romania most recently issued EUR denominated bonds with a maturity of ten years in May, when it raised EUR 2 bln at a yield of 3.62% per year.
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