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NextGenerationEU: European Commission provides €1.9 billion in pre-financing of Romania’s loan component

On 13 January, the Commission paid €1.9 billion to Romania in pre-financing of the loan component of its recovery and resilience plan (RRP).

Romanian and European Union flags, © European Union
European Union

date:  13/01/2022

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This follows the €1.8 billion paid to Romania in grants on December 2, 2021. In total, Romania has now received 13% of the total envelope under the Recovery and Resilience Facility. (RRF). The country is expected to receive a total of €29.2 billion, including €14.2 billion in subsidies and €14.9 billion in loans, over the course of its plan. The loan and grant agreements were signed separately for procedural reasons related to the changes in the Romanian government in autumn 2021. The loan and grant components of the Romanian RRP are mutually reinforcing in many areas. This allows Romania to invest in sustainable transport, forests and the protection of biodiversity, energy, digital transformation or education. For example, rail sector modernisation projects are supported by the grant component of the Romanian RRP, while the loan component will finance the development, modernisation and decarbonisation of road transport. Reforms and investments in areas such as water management, waste management and building renovation will also be mainly supported through the loan component. The RRF is at the heart of NextGenerationEU, which will make €800 billion (current prices) available to support investment and reform across the EU. Romania's plan is part of the EU's unprecedented response to emerge stronger from the COVID-19 crisis, encourage ecological and digital transitions and strengthen resilience and cohesion in our societies.