World Bank approves new EUR 500 mln loan for Romania

The World Bank’s Board of Executive Directors has approved a EUR 500 million loan to help Romania increase the efficiency of its public institutions and implement sustainable growth policies. “Romania’s authorities have demonstrated a sustained commitment to a reform agenda that is at the heart of reducing poverty and exclusion, and creating greater opportunities for Romania’s citizens,” said Cyril Muller, World Bank Vice President for Europe and Central Asia. “The World Bank is standing by Romania’s side to advance its continued economic transformation and faster convergence with the EU.” The new program’s first goal is enhancing the performance and governance of State-Owned Enterprises to boost export competitiveness and macro-economic performance. The program will also help improve the efficiency of public spending, by supporting centralized procurement in the health sector. The second priority is reducing poverty and social exclusion by supporting a comprehensive reform of the social assistance system that is expected to lift half a million Romanians out of poverty. The reforms of the cadaster system, also included in this financing program, will enable free and systematic registration of properties, including purchase, sale and inheritance of land, for more than one million Romanians, especially for people from marginalized communities and the Roma. A functioning cadaster system will also be critical to attract investments. Thirdly, the program will support investments in renewable and low carbon energy sources and improve energy efficiency in the residential and industrial sectors. “The Government’s reform priorities focus on achieving Romania’s faster convergence with the EU, reducing poverty and exclusion, and strengthening the confidence of investors in the Romanian economy for long-term, sustainable growth,” said Anca Dragu, Romanian Minister of Public Finance. The loan will be an important catalyst to unlocking Romania’s productivity gains and enhancing the medium-term growth potential. World Bank grants Romania USD 15 bln worth of financing in 25 years World Bank: Romania’s economy to grow by 5.1% this year editor@romania-insider.com