The World Bank is granting $650 million to Romania, the Romanian agency Agerpres reported. The loan was granted by a decision of the Board of Executive Directors yesterday, BTA reported.
The financing is in support of the Romanian government's efforts to strengthen financial stability, develop the private sector and create jobs, the international financial institution said in a statement.
According to the World Bank, the loan, whose euro equivalent is $544 million, will create new opportunities for citizens at a critical moment for the Romanian economy.
The financing is directed in two directions. The first is to restore financial sustainability in terms of tax policy and public spending in order to support fiscal consolidation to achieve a budget deficit of 3 percent of gross domestic product by the end of 2030. The loan money should also be directed towards achieving economic growth in the private sector.