Romania needs to repay over EUR 1.26 billion to the European Union and the World Bank next year from the stand-by loan contracted in 2009, according to data of the Finance Ministry.

Of the total amount, some EUR 1.15 billion represents main repayments, whereas the remaining amount comes from interest rates and fees, reports local Agerpres. Romania needs to reimburse over EUR 1.25 billion to the European Union and only EUR 9 million to the World Bank.

This year Romania has paid EUR 113 million to the EU and the World Bank, representing interest and fees for the loans. The largest part of the amount was reimbursed to the EU, namely EUR 104 million. The World Bank received EUR 9.1 million.

In 2015, Romania repaid over EUR 1.83 billion to the International Monetary Fund (IMF), the European Union, and the World Bank. That year the country managed to reimburse its entire loan from the IMF. The last installment was paid in February and amounted to EUR 165 million. In total, Romania reimbursed over EUR 2.49 billion to the IMF.

Last year, Romania also repaid over EUR 1.65 billion to the EU, of which EUR 1.5 billion represented repayments and the rest of the amount was interest interest and fees.

Between 2009 and 2015, the total amount reimbursed to the three institutions amounted to over EUR 4.8 billion. Over EUR 2.39 billion went to the IMF whereas EUR 2.2 billion was repaid to the EU and EUR 67 million to the World Bank.

Romania still needs to pay over EUR 4.77 billion to the World Bank and the European Union. The largest part of the amount will go to the European Union, namely EUR 3.71 billion.

According to data from Romania’s National Bank (BNR), the IMF Executive Board approved Romania's request to conclude a stand-by arrangement for a period of two years in May 2009, for a loan of EUR 12.9 billion.

That year, Romania also took EUR 5 billion from the European Union and EUR 1 billion from the World Bank. The loans helped Romania withstand the effects of the global economic crisis.

Some of the money went to Romania’s National Bank and was used to strengthen the country’s foreign currency reserves and fight off the local currency’s depreciation. The rest of the money went to the Finance Ministry and was used to finance the budget deficit.

editor@romania-insider.com