Announcement of Romania Structural Adjustment Loan on June 4, 1992

FOR IMMEDIATE RELEASE World Bank 1818 H Street, N.W., Washington, D.C. 20433, U.S.A.* Telephone: (202) 477-1234 BANK NEWS RELEASE NO. 92/88 Contact: Peter Riddleberger Tel: (202) 473-1786 ROMANIA: STRUCTURAL ADJUSTMENT LOAN The following is additional information about a project announced in this week's issue of World Bank News. DATE: June 4, 1992 WORLD BANK GROUP SUPPORT: World Bank loan: $400 million. The World Bank loan is for 17 years, including five years of grace, with a variable interest rate, currently 7.73 percent, linked to the cost of the Bank's borrowings. It also carries an annual commitment charge of 0.25 percent on the undisbursed balance. TOTAL COST: $400 million OTHER FINANCING: Possible cofinancing of up to $100 million from the Japanese Export-Import Bank IMPLEMENTING AGENCY: Ministry of Finance ESTIMATED COMPLETION DATE: 1993 PROJECT DESCRIPTION: The objectives of the Structural Adjustment Loan are to: (a) maintain a stable macro-economic environment; (b) make productive sectors efficient and internationally competitive; (c) privatize land, housing, and enterprises; and (d) protect the affected segments of the population. The loan will support: (a) the stabilization efforts of the government while maintain- ing the momentum of price liberalization and the progressive opening of the economy; (b) enterprise reform, especially enterprise financial discipline and privatization; and (c) an affordable and effective social safety net. The loan will finance 100 percent of the foreign exchange costs of eligible imports, except for a standard negative list including military and paramilitary items, nuclear equipment, uranium, and some luxury goods.