The World Bank’s Board of Executive Directors approved a Development Policy Loan (DPL) to support the Government of Romania’s efforts to restore fiscal sustainability, enable private sector-led growth and foster job creation. This financing will help Romanians see new opportunities emerge, from more accessible finance for small businesses to cleaner, more competitive industries and efficient energy.

The 650 million USD (equivalent to EUR 544 million) loan comes at a critical moment for Romania’s economy. In 2024, fiscal and current account deficits as a share of GDP were the widest in the EU. The government has responded with a robust reform program to put its public finances on a sustainable footing while laying the groundwork for stronger, more inclusive growth through a sound fiscal consolidation program. This loan will support the continued implementation of the government’s reform agenda.

“Romania has taken bold and necessary steps to get its public finances on track and is seeing results as deficits narrow and financing costs come down,” said Yasser El-Gammal, World Bank Country Manager for Romania and Hungary “We expect these ambitious reforms to restore fiscal health, catalyze private investment, and create jobs. This financing reflects our confidence in Romania’s steadfast efforts and our long-standing partnership with the government.”

The loan is organized around two pillars. The first focuses on restoring fiscal sustainability by addressing structural weaknesses in tax policy and public spending, with measures projected to support fiscal consolidation toward a deficit target of 3 percent of GDP by the end of 2030.

The second pillar focuses on enabling private sector-led growth and promoting job creation by easing key constraints to investment and competitiveness, including access to finance, innovation and digitalization, and reliable and affordable energy.