Benoit Blarel, World Bank country manager for Romania said the loan supported the implementation of the Government’s program aiming to strengthen public expenditure management as well as to cushion the impact of the crisis on the poor and vulnerable.

The World Bank official added that the loan is aimed to minimize risks of a domestic financial sector crisis, by addressing current and potential vulnerabilities, as well as to strengthen the resilience of the economy and sustain high growth over the long term.

“Tackling the structural reform agenda is particularly important since strengthening the resilience of the economy will better position Romania to resume and sustain high growth over the medium-term,” said Swati Ghosh, Task Team Leader for the program.

The board of the World Bank said in previous statement that it would approve on July 16 the first loan of 300 million euros, of the 1bln euro three-part development policy loan agreed by the government and WB officials, its disbursement being linked to the public sector reforms.

The second loan of 360 million euros could be approved by year-end, and the second tranche of 340 mln euros by mid 2010.

The development policy loan program includes reforms in public financial management, the social sectors and the financial sector.