Romania's Government approves EUR 500 mln loan from IBRD

Romania will sign a loan agreement with the International Bank for Reconstruction and Development (IBRD) worth EUR 500 million, according to a memorandum discussed during the yesterday’s government meeting. This is the second loan for development policies on the improvement of public finances and economic growth Romania takes from IBRD, which is part of the World Bank Group. Romania took a similar loan worth EUR 750 million in 2014. The new loan will be granted for a period of 20 years. It will be reimbursed in one installment in 2036. The amounts will be used to finance the state budget deficit and refinance government debt. According to the financing instrument, these loans are contracted based on certain conditions that the Romanian state needs to meet. The authorities need to take measures for improving the social assistance system, for a better management of the state-owned companies, and for improving the energy market. The World Bank celebrated on Tuesday 25 years since opening its first office in Bucharest. In the past 25 years, the international financial institution has provided USD 12.5 billion worth of financing to Romania. editor@romania-insider.com