Romania plans to secure a development loan from the World Bank Group to address the issue of low utilization of EU funds.
Rewritten Article:
The Romanian government, via the Ministry of Finance, is eyeing a new development loan from the International Bank for Reconstruction and Development (IBRD), part of WB Group, as the nation's budget teeters and certain European fund sources are axed. According to Economica, this move comes amid advantageous financial conditions.
To access this article, sign up for a Romania Insider membership or log in (if already a member)
A proposed memorandum awaiting approval in the Government meeting on April 3 outlines the intention to secure a new loan, or possibly a series of loans, that align with favorable financial terms.
The loan is meant to bridge the funding gaps caused by halted or canceled European financing and support structural reforms to strengthen fiscal sustainability.
The memorandum states, "Given the imperative to fund the state budget deficit, refinance the government's public debt, and benefit from IBRD's expertise and collaborative spirit in similar programs, we advocate for procuring a loan and/or a programmatic series of loans for development policies from IBRD. The bank has signaled its readiness to extend such a loan to Romania in the near future."
(Photo: Alekleks/ Dreamstime)
iulian@our website
The IBRD currently has an investment portfolio in Romania worth approximately $3.25 billion, encompassing 12 projects[3]. However, specifics about the conditions of a new development loan from IBRD remain scarce at present.
Recently, the European Bank for Reconstruction and Development (EBRD) greenlighted a loan of up to EUR 190.3 million for Rivus Investments to develop a mixed-use urban regeneration project in Cluj-Napoca. The loan forms part of a larger EUR 400.6 million club loan, with EUR 180.3 million committed and EUR 10 million uncommitted[1][2].
Currently, there's no detailed information available on a new IBRD loan specifically for the Romanian government. For comprehensive terms and conditions of this potential new IBRD loan, additional or updated information from relevant financial institutions or government statements would be required.
[1] EBRD, Rivus Investments, Cluj-Napoca (https://www.ebrd.com/news/2022/rivus-investments-to-develop-mixed-use-urban-regeneration-project-in-cluj-napoca.html)
[2] Rivus, EBRD financing for Cluj-Napoca regeneration project (https://www.rivus.ro/en/rivera/ebrd-financing-for-cluj-napoca-regeneration-project/)
[3] IBRD, Romania (https://www.ibrd.org/countries/romania.html)
- Amid political discussions, the Romanian government is considering securing a development loan from the International Bank for Reconstruction and Development (IBRD), which could support business developments and structural reforms to improve the nation's fiscal sustainability.
- In the realm of both business and general news, the IBRD's readiness to extend a loan to Romania for development policies highlights the possible intervention in the country's budget difficulties, as some European funding sources are withheld.
