“Record credit line” for Romania from the World Bank

The Government will approve on Wednesday, at the meeting, an agreement through which the World Bank provides Romania a credit line of 1 billion Euros, said on Tuesday, Prime Minister Victor Ponta.

"Tomorrow, within the Government meeting, we will approve the necessary documents for the largest line of credit that the World Bank has ever granted to Romania, one billion Euros," said Victor Ponta.

The prime minister said that the money would be available to Romania as a "safe amount" for "any needs".

"Money from the World Bank come for some very clear things and can only be transparently spent," said Victor Ponta.
The State Secretary in the Ministry of Finance, Liviu Voinea, said that the agreement with the World Bank is a preventive one and once the agreement is signed, "money can be held without any preconditions".

"The interest on the eventual money borrowed from the World Bank will be 3 to 3.5 percent," said Liviu Voinea.

The money from the World Bank is not interest bearing unless the amount is extracted in the next three years said Liviu Voinea, who was named Secretary of State in the Ministry of Finance on Tuesday.

The premier also said that "Romania's situation is stable, under control".

"The National Bank of Romania (BNR), in coordination with other institutions, has all the elements to ensure the parameters that Romania has committed", he also stressed.

Victor Ponta had a meeting Tuesday with Romanian President Traian Băsescu, BNR governor Mugur Isărescu, at meeting attended also by the Minister of Finances, Florin Georgescu.

Translated by Alexandra-Diana Mircea
MTTLC, Bucharest University