BUCHAREST (Romania), June 13 (SeeNews) - The World Bank said on Wednesday it has approved a 1.0 billion euro ($1.25 billion) development policy loan for Romania.
The deferred drawdown option development policy loan will support the Romanian government's commitments under the EU Fiscal Compact, the World Bank said in a statement.
The loan is extended by the International Bank for Reconstruction and Development, part of the World Bank group.
Under the deferred drawdown option, Romania will not withdraw the loan immediately but use it as a fiscal buffer to be called upon if it becomes necessary.
The loan will remain available for the next three years if Romania follows its macroeconomic and reform programmes, the statement added.
The main aims of the loan are to enhance the efficiency of public spending and the government’s revenue-raising capacity through better compliance with tax laws; to improve governance of state owned enterprises in the energy and transport sectors to reduce the drain on the budget, generate savings and attract the private capital needed to modernize plants and increase their competitiveness, and pursue the liberalization of energy markets; and to enhance the quality of public health care.
“Romania has made good progress in stabilizing the macro-economic and fiscal framework and putting the country on a growth path, despite the challenging economic environment throughout Europe today,” World Bank vice president for Europe and central Asia, Philippe Le Houerou, said.