EC will provide Romania with 5 bn euro loan
Adelina Marini, April 21, 2009
The European Commission will provide a mid-term loan to Romania of up to 5 bn euro in addition to 20 bn euro financial assistance for the troubled Romanian economy. The loan is conditional upon the implementation by the Romanian authorities of a major programme of fiscal, financial and structural adjustment.
Earlier the IMF engaged with almost 13 bn euro, and the World Bank, the European Investment Bank and the European bank of Reconstruction and Development will help by providing 1 bn euro each. The overall sum will be provided to Romania in five installments in the next 24 months.
The main target of the loan would be capitalisation of troubled Romanian banks, consolidation to limit the budget deficit to 5.1% of GDP in 2009 as well as improvement of the work of the public administration.
Before Romania, international help so far have neem requested by Hungary and Latvia. The decision of the European Commission has to be approved by the ECOFIN on the 5th of May.