World Bank and Romania Sign Loan to Reverse School Dropout Rates and Declining University Enrollment

EUR 200 million loan to benefit 1,620,000 Romanian students in 1,100 high-schools and 300 public universities

WASHINGTON, April 17, 2015—Today in Washington, Laura Tuck, World Bank Vice President for Europe and Central Asia, and Eugen Teodorovici, Romania’s Minister of Public Finance, signed a Euro 200 million loan agreement for the Romania Secondary Education Project (ROSE).

ROSE, the largest education project supported by the World Bank in the Europe and Central Asia region, aims to increase Romanian students’ chances of successfully completing tertiary education.  It will be implemented by the Ministry of Education and Scientific Research over the next seven years. The loan was approved by the World Bank’s Board of Executive Directors on March 16, 2015. 

“It is an honor for me to be here today to sign this loan on behalf of the World Bank,” said Laura Tuck, World Bank Vice President for Europe and Central Asia. “The event today bears witness of the positive performance of Romania and the excellent dialogue between the Government and the World Bank. It recognizes the importance of quality education for all Romanians. The country is confronted with an aging population and a shrinking workforce. A well-qualified and more productive workforce is crucial to sustain economic growth in the future.”

Enrollment in upper secondary education in Romania is high, but the transition to tertiary education is hindered due to increasing dropout rates and poor performance on the baccalaureate. ROSE was designed to help the Government of Romania, the administration of education institutions, teachers, and students address these issues.  ROSE aims to increase the rate of successful completion of tertiary education by focusing on schools and student groups most at risk of failure.

“In Romania, poverty and social exclusion are still high and the Government of Romania puts special emphasis on education, health, social services, and employment. This education project, implemented with the support of the World Bank, gives us part of the solutions so that the all Romanians, and especially those most in need, will be able to improve their educational outcome and upgrade their skills for a more competitive economy,” said Eugen Teodorovici, Romanian Minister of Public Finance.

Following the loan agreement signing today, the project is expected to become effective in the coming months in order for loan funds to be available for the 2015-16 school year. 

“With this loan signing, I am very happy to see that such an important project is on its way towards implementation. ROSE is the largest education operation supported by the Bank in Romania. It will support the Government of Romania in its efforts to end extreme poverty and diminish inequality by helping disadvantaged high school students to overcome poverty-related barriers and make the critical transition to tertiary education,” added Claudia Costin, Senior Director, Education Global Practice.