WB approved EUR 300 million-loan to Romania
Romania receives another instalment from the World Bank. The country had already been transferred EUR 300 million out of the EUR 1 billion-loan, the transfer of another EUR 300 million was approved on January 20th, and the remaining EUR 400 million will be included in the new loan agreement between Romania and the World Bank, Realitatea.net reports. The instalment approved on January the 20th is the second, although three instalments were negotiated in 2009.
Nevertheless, Romania has only managed to obtain the first two, as it failed to meet reform-related conditions. The remaining EUR 400 million will no longer be granted, but included in the new agreement between Romania and the WB. This won't be an independent agreement, but will be included in the one to be signed with the IMF and the European Commission.
The IMF will offer another loan, approximately EUR 3.7 billion, based on a preventive agreement, while the European Commission will lay out a somewhat smaller amount, approximately EUR 3 billion. The state will need a loan of EUR 10 billion in 2011. In March, the stand-by agreement signed in May 2009 will come to an end. In the past three years, Romania has borrowed EUR 19.5 billion, from the International Monetary Fund, the European Commission, the World Bank and the European Bank for Reconstruction and Development.
Published on 21.01.2011
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