600 Million Euro Loan Granted to Romania by the World Bank

The Executive Directors of the World Bank Group (WBG) approved on Thursday a development policy loan (DPL) amounting to 599.1 million euros for Romania, with a focus on economic and environmental sustainability.

According to the mentioned source, this loan is aimed at fiscal management and promoting green economic growth in Romania. The goal is to implement reforms to strengthen the country’s fiscal framework, stimulate inclusive economic growth, and encourage private sector investments.

“Through this loan, the World Bank supports fiscal consolidation in Romania, with an emphasis on fiscal sustainability and increasing the equity of the pension system. It also supports the introduction of incentives to facilitate the decarbonization of the transportation sector, where greenhouse gas emissions continue to rise, as well as the issuance of Romania’s first green bonds to stimulate public investment,” the statement notes.

Additionally, the loan contributes to creating favorable conditions for greater private sector involvement in renewable energy and energy efficiency. This includes introducing new financing for green investments, promoting offshore wind energy, advancing green hydrogen and other renewable energy sources, and strengthening the legislation on public-private partnerships. These measures are crucial for Romania to meet its commitments under the European Green Deal and achieve its climate change mitigation goals, given the country’s high vulnerability to climate risks, the statement highlights.