Romania has signed on April 17 an EUR 200 million loan agreement with the World Bank for a local education project.

Laura Tuck, World Bank Vice President for Europe and Central Asia, and Eugen Teodorovici, Romania’s Minister of Public Finance, signed the agreement one month after World Bank’s Board of Directors approved the loan.

Romania’s Ministry of Education and Scientific Research will use the money for the Romania Secondary Education Project (ROSE), which aims to increase Romanian students’ chances of successfully completing tertiary education.  The Ministry will implement the project over seven years, according to a statement of the World Bank.

“The country is confronted with an aging population and a shrinking workforce. A well-qualified and more productive workforce is crucial to sustaining economic growth in the future,” said Laura Tuck, World Bank Vice President for Europe and Central Asia.

The project is expected to become effective in the coming months so that the funds will be available for the 2015-2016 school year.

Enrollment in upper secondary education is high in Romania, but the transition to tertiary education is still low due to increasing dropout rates and poor performance on the baccalaureate.

ROSE focuses on schools and student groups at risk of failure and aims to increase the rate of successful completion of tertiary education.

Irina Popescu, irina.popescu@romania-insider.com