The World Bank will grant Romania two loans totaling EUR 1 billion. Three quarters of this amount will go to development policies, and the rest for developing the country’s health sector.

The loan agreements were signed on Tuesday, June 17, by Romanian Finance Minister Ioana-Maria Petrescu, the Minister Delegate for Budget Liviu Voinea, and Elisabetta Capannelli, World Bank country manager for Romania.

Both loans are granted for 18 years, with an interest rate of 6-month EURIBOR plus a variable margin. Each loan will be reimbursed in one installment, in 2032, in March and May. The two loans stay within the new country partnership strategy between the World Bank and Romania, which will consist in up to EUR 1 billion financial assistance a year between 2014 and 2017.

The EUR 750 million loan should help Romania turn its public finances more efficient, and boost economic growth. Money will help strengthen the management of the country’s public debt, increase management efficiency for state companies, and improve the energy and capital markets, among others.

The EUR 250 million loan will help improve quality and efficiency in the state – run healthcare system, with better services in hospitals, developing multifunctional heath centers in poorly covered areas, and more efficient use of resources for the sector to be financially sustainable. The project, over six years, will be implemented by the Health Ministry.

editor@romania-insider.com