Number of Active Projects
Under the Country Partnership Framework (CPF) for FY19-23, the World Bank supports Romania’s efforts to accelerate structural reforms and convergence with the EU through robust, sustainable, and equitable growth and enhanced competitiveness.
The Bank engages in Romania through the full range of its instruments: development policy lending, investment lending, Advisory Services and Analytics (ASA), and Reimbursable Advisory Services (RAS).
In response to COVID-19, the Government of Romania activated €400 million of pre-arranged financial support from the World Bank through the Catastrophe Deferred Drawdown Option (CATDDO) facility that the Government negotiated with the World Bank in June 2018. The financing covers a range of interventions to strengthen health services, minimize the losses to both the public and private sectors, and safeguard lives and livelihoods overall.
Also, through the Health Sector Reform Program, the Bank is working to help the Romanian authorities to procure emergency supplies and equipment.
International Bank for Reconstruction and Development
Engagement over FY19–23 has the overarching goal of strengthening Romania’s institutions, advancing poverty reduction, and promoting shared prosperity through three pillars:
- Equal opportunities for all
- Private sector growth and competitiveness
- Resilience to shocks.
The Romania program consists of nine lending projects, 11 trust funds, and 63 ASA tasks, out of which:
- 39 tasks correspond to 30 RAS agreements signed and under implementation
- seven RAS agreements under preparation
- 10 non-RAS ASA (Bank Budget funded)
- 7 non-RAS ASA (EU-funded trust funds)
The active lending portfolio of the International Bank for Reconstruction and Development (IBRD) amounts to $1.98 billion. In the past few months, the performance of the portfolio has improved, though a number of projects need to be restructured this year to help the Romanian Government respond to the COVID-19 crisis.
The current program of RAS - one of the largest in the World Bank Group at $102.65 million - is focused on priority areas for Romania’s EU convergence, such as improved strategic planning and budgeting, evidence-based policy making, protection of the vulnerable, and quality assurance in higher education. It also features a growing engagement to support a number of municipalities, including Bucharest, Constanta, Brasov, Cluj, and several others.
International Finance Corporation
The International Finance Corporation’s (IFC) committed own account portfolio in Romania ranks second in IFC’s Europe and Central Asia region after Turkey. Since the start of operations in Romania in 1991 through April of FY20, IFC has invested approximately $3.5 billion, including $0.7 billion mobilized from partners, in over 100 projects in various sectors.
As of April 15, 2020, IFC’s committed portfolio in Romania was $802 million, of which 62.5 percent was represented by investments in financial institutions (banks, non-bank financial institutions) and the remaining 37.5 percent by investments in the real sector. The outstanding portfolio is $640 million, accounting for 1.4 percent of IFC’s global outstanding portfolio.
Last Updated: Apr 16, 2020