Announcement of World Bank Approves Loan for Romania Health Sector on October 3, 1991

FOR IMMEDIAFE RELEASE ,World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A. * Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 92/19 Contact: Fawzi Rihane (202) 473-2675 WORLD BANK APPROVES LOAN FOR ROMANIA HEALTH SECTOR Country Strives to Reverse Declining Health Conditions WASHINGTON, October 3, 1991 -- Romania will begin overhauling its health-care system, control the spread of AIDS, and improve family-planning services through a project being supported by a $150 million World Bank loan. The project is aimed at reversing worsening health conditions and improving the health-care system. The project includes improvements to rural health-care centers, a health-education campaign, strengthening family-planning programs, training for health-care workers, and medical supplies for hospitals and other health-care facilities, Romania has posted some of the worst health statistics in Europe. The average adult is expected to live only about 69 years, with many adult deaths attributable to cardiovascular illnesses, cancer, and respiratory diseases. And while life expectancy is falling, the incidence of some infectious diseases is on the rise. In the past two years, Romania's foreign-exchange reserves dwindled, making it almost impossible to import medical supplies from industrialized countries. Shortages of disposable syringes have caused many doctors to reuse needles without adequately sterilizing them, contributing to the spread of diseases, such as AIDS and hepatitis-B. The World Bank loan will help finance imports of a variety of medical supplies, including disposable syringes and autoclaves. Approval of the current loan marks the second time Romania has borrowed from the Bank since the country reactivated its membership in the Bank last year. The World Bank loan is for 15 years, including five years of grace, with a variable interest rate, currently 7.73 percent, linked to the cost of the Bank borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. NOTE: Money figures are expressed in U.S. dollar equivalents.