Saturday, January 3, 2009
Romania agrees EIB loan
Romania has been granted a loan of €1 billion (0.95 million) from the European Investment Bank (EIB) it has been revealed.
The cash will be available over a maximum of 15 instalments which must be drawn down before 2013, reports Legal Romania.
In order to access a new instalment of the loan, the Romanian government must prove that the previous one has been spent.
The first instalment is of €250 million and is already available to be accessed.
In future, the loan must be taken in chunks of £50 million and £250 million.
The total amount on offer could increase by up to a third depending on the financial situation in the country.
Recently, Associated Press reported that Emil Boc, the new prime minister of Romania, is planning to cut public spending by at least 20 per cent to help the country deal with the current downturn.
The government will also press ahead with reforms, he added.
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