Romania signs partnership with World Bank for USD 6 bln over three years
The World Bank Group and Romania concluded a partnership for the 2025-2029 period on Wednesday, October 2, through which the former will provide the latter with an estimated USD 6 billion in financing over the following three years. According to prime minister Marcel Ciolacu, USD 2.5 billion is allocated for the public sector and USD 3.5 billion for the private sector.
PM Ciolacu said that the partnership framework between Romania and the World Bank aims to promote human capital by expanding access to education, health, and social services for the next five years.
"We want to create new opportunities for better-paying jobs by stimulating private capital, accelerating the green transition, and strengthening resilience to climate shocks. [...] These funds come from investments made by international financial corporations and guarantees offered by the Multilateral Investment Guarantee Agency. I would like to emphasize this focus on increasing the competitiveness of the private sector," said Marcel Ciolacu.
The Romanian official also noted that the World Bank currently has a portfolio of USD 2 billion in Romania and is set to fund additional projects worth USD 3 billion in the next three years.
“These projects will focus on the financial sector, ensuring access to financing for SMEs and farmers, for women and young entrepreneurs, as well as for reducing infrastructure gaps, logistics, and integration into value chains," the prime minister explained.
The government aims to use the World Bank funds to integrate Romania’s urban and rural areas.
“A unity through our reindustrialization program aimed at promoting strategic industrial sectors and a unity through creating opportunities for economic growth," Ciolacu said.
He also mentioned that the World Bank estimates Romania's growth potential at 5% per year, if certain conditions are met.
Moreover, Marcel Ciolacu announced the signing of a disaster risk management loan with a drawdown option over the next three years. “In fact, it is a USD 500 million financing line. This financing is available to the government to strengthen the capacity for disaster prevention and rapid response to natural disasters and climate change. This financing line will help Romania have quick access to funding for emergency situations,” he said.
Finance minister Marcel Boloș stated that the signed agreement focuses on protecting citizens and preparing for a "quick and effective" response in critical moments, News.ro reported. He referenced recent floods that caused significant damage to homes and infrastructure, highlighting the increasing frequency and severity of climate risks.
(Photo source: Gov.ro)
