Support will be provided in conjunction with the IMF, the World Bank, the European Bank of Reconstruction and Development and other multilateral creditors, bringing the total to up to € 20 billion.
25 March 2009.
"I am pleased that it was possible to come to an agreement rapidly on a
significant financial assistance package. I welcome the commitment by the
Romanian authorities to implement a major programme of economic adjustment
aimed at bringing the economy on a sound and sustainable growth path, including
through strengthening financial sector supervision. I am aware of the hardships
that Romania and its citizens are encountering at this time of crisis, but I am
confident that with the right policies and with the help of the EU and other
international bodies they will emerge stronger," said European Economic and
Monetary Affairs Commissioner Joaquin Almunia
The support will be provided in conjunction with the International Monetary Fund (€13 billion) and the World Bank (€1 billion). The European Bank of Reconstruction and Development and other multilateral creditors will jointly provide a total of €1 billion, bringing the total to up to € 20 billion over the period to the first quarter of 2011.
EU assistance will take form of a Balance of payment (BoP) loan
The proposed medium-term financial assistance to Romania will be based on a Council Decision based on a Commission recommendation to grant this assistance.
Such support is provided under Council Regulation 332/2002 establishing a facility providing medium-term financial assistance for non-euro area EU Member States' balance of payments (BoP).
The Commission is expected to adopt this recommendation for a Council Decision in the coming weeks. Following the Council Decision, the Memorandum of Understanding, which spells out the precise policy conditions, as well as the loan agreement, will be agreed between the European Commission and the Romanian authorities.
This support comes on top of the increase in advance payments of structural funds from €0.5 billion to €0.8 billion for 2009, as part of the European Economic Recovery Package. Romania is also likely to benefit from the significant increase of the EIB resources.
>> Joint statement by the Presidency of the Ecofin Council and the Commission on providing EU medium-term financial assistance to Romania