“The loan contracted from the EIB will help significantly to take the pressure off the state budget in order to co-finance the measures included in the National Rural Development Program (PNDR) for the period July 2013 – December 2015 and to increase the absorption rate within the program, by covering a large part of the state’s contribution to the selected schemes,” the ministry said in a statement.
The loan from the EIB is an advantageous source of financing the state budget deficit on the long run. The loan matures in 15 years and has a grace period of up to five years, according to the statement.
The loan agreement was signed on December 24 by Finance Minister Daniel Chitoiu and Minister-delegate for Budget Liviu Voinea, on behalf of Romania, and by EIB’s Bucharest office head Flavio Schiavo Campo de Gregorio and legal adviser Stella Renita.
The EIB is the European Union’s bank which represents the interests of the EU Member States and works closely with other EU institutions to implement EU policy.