World Bank approves EUR 600 mln loan to Romania
The Executive Directors of the World Bank Group have approved a Development Policy Loan for Romania amounting to EUR 599.1 million, with a dual focus on economic and environmental sustainability.
The loan will allow Romania to make reforms aimed at strengthening the country's fiscal framework, promoting green and inclusive economic growth, and stimulating private-sector investment.
The World Bank statement highlights that the funds will support the introduction of incentives to facilitate the decarbonization of the transport sector, where greenhouse gas emissions continue to increase, as well as the issuance of Romania’s first green bond to stimulate public investment. Moreover, they will enhance the equity of the pension system.
The loan also helps lay the foundations for increased private-sector participation in renewable energy and energy efficiency by introducing novel financing for green investments, measures to boost offshore wind, green hydrogen, and other renewable energy capacity, and by strengthening public-private partnership legislation.
Such steps are essential for Romania to meet its commitments under the European Green Deal and achieve climate mitigation goals, particularly given the country’s high vulnerability to the risks of climate change, according to the bank.
"The World Bank Group remains a steadfast partner in Romania's journey toward a more equitable and sustainable economy. This new funding reflects our confidence in Romania's capacity to integrate inclusive growth with environmental stewardship,” said Anna Akhalkatsi, World Bank Country Director for the European Union.
“The operation supports a package of reforms designed to create a lasting impact that boosts inclusion in Romania and contributes to global efforts to combat climate change,” she added.
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