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The government on Thursday approved, through a memorandum, the negotiation of the Loan Agreement with the International Bank for Reconstruction and Development (IBRD) for a development policy program (DPL1, Development Policy Loan) for green and inclusive growth worth 467.5 million euros, a press release by the government informs.
The negotiation of the Agreement on non-reimbursable financial assistance, amounting to 24.2 million dollars, as well as the agreement in principle for contracting the second loan for development policies (DPL2), worth up to 500 mil. USD equivalent, were also approved through the same memorandum.
"The loan agreement worth 467.5 million euros (the equivalent in euro of 500 million USD) is the first of the two development policy loan agreements (DPL) that IBRD has shown its willingness to grant to Romania. The value of the DPL1 could be increased up to about 600 million euros, subject to approval by the Bank's Executive Steering Committee. The agreement in principle on this loan was signed in 2021. DPL1 is planned to be approved by the Bank's Committee of Executive Directors by the end of June 2022, and DPL2 is expected to be contracted in 2023. The actions related to DPL1 are already fulfilled. The conclusions related to DPL2 will be able to be reconsidered/adjusted, on the occasion of its contracting, depending on the concrete conditions for the fulfillment of the actions in question," the press release says.
The source specifies that the DPL loans will be used to finance the deficit of the state budget and the refinancing of the government public debt, and their contracting by Romania is conditioned by the adoption of reform actions.
