The World Bank Group (WBG) Board of Executive Directors approved on June 30 the second Inclusive and Green Growth Development Policy Loan (DPL) for Romania of EUR 592 million.

“Recent World Bank analysis shows that Romania needs to address poverty and inclusion challenges, and its ability to do so will require strong institutions,” said Anna Akhalkatsi, World Bank Country Manager for Romania.

The money will be spent on three separate actions: social aid for disabled and low-income families, strengthening fiscal management by eliminating tax loopholes and bolstering the budgetary frameworks, and “a holistic set of core reforms” to decarbonize the economy, enabling the green transition in Romania.

This was the second of two financing operations supporting the government’s key structural reforms to enhance inclusion, strengthen fiscal management, and foster decarbonization and climate resilience.

The financing supports Romania’s National Recovery and Resilience Plan (PNRR), facilitating increased absorption of European Union (EU) funds. The first development policy financing, for EUR 622 million, was approved in June 2022. 

iulian@romania-insider.com

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