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World Bank presents the Romania's Country Partnership Strategy (2014 - 2018)

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World Bank country office in Romania recently organized an informal press briefing with the participation of Elisabetta Capannelli, World Bank Romania Country Manager, and Ismail Radwan, Country Program Coordinator for Central Europe and the Baltics, to discuss the preparation of a new Romania’s country partnership strategy (CPS) . Country Partnership Strategy (CPS) guides World Bank activity in a country, based on the country’s own development objectives.

 

CPS defines the key areas of World Bank support, based on the country’s needs and the Bank’s potential value-added to address these needs. CPS also attempts to define expected results of the

partnership between the Bank and the Government over a four year period (2014-2017).

 

According to Ismail Radwan, the World Bank has prepared this new strategy since July, together with the Romanian officials, with the NGOs and the academic media. Analyses on several domains are made, and in the end a report to be presented in Washington will be drawn up and will be posted on the WB site for consultancy. In his opinion, growth was shared in Romania even after the crisis, which is a good sign and allows the preparation of the new strategy.

 

In supporting the Romanian Government during 2014-2020, World Bank will consider the main themes agreed to between EU and Romanian Govt.:

 

  • Strengthening research, technological development and innovation, ICT

 

  • Enhance competitiveness of SMEs, agricultural sector and fisheries and aquaculture sector

  • Support the shift towards low carbon economy in all sectors, promote climate change adaptation, resources efficiency

 

  • Promote sustainable transport and remove obstacles

 

  • Promote employment and supporting labor mobility, social inclusion and combating poverty

 

  • Invest in education and lifelong learning

 

  • Enhance institutional capacity and an efficient public administration

 

According to Ismail Radwan, here are some early suggestions for the future CPS pillars:

 

  1. - Creating a 21st Century Government (Governance. Institutional Capacity. Public Sector Reform)

  2. - Jobs and Growth (Jobs Creation. Labor market. SOEs. Capital Market. Development. Agriculture. Infrastructure)

  3. - Shared prosperity (Access to Education and Health. Social Inclusion.)

 

In her turn, Elisabetta Capannelli ( she became the World Bank Country Manager for Romania and Hungary on May 7,2013) made some clarifications connected to the financing of this strategy, which will be made through all the instruments in this domain, namely IFC.

 

She referred to the previous strategy, during 2009-2013 when World Bank in Romania focused on three main pillars:

 

? Public Sector Reform (comprising of: public financial management, public administration reform, governance)

 

? Growth and competitiveness (comprising of: growth agenda, financial sector, business environment and competition, knowledge economy and digital agenda, research, development and innovation, education, agriculture and rural development, energy and environment, transport, hazards risk

mitigation)

 

? Spatial and Social Inclusion (comprising of: Social Inclusion, Social Assistance, Social Insurance and Health sector)

 

At Mid-Term, 3 new themes were added:

 

? Policy reforms to reap the benefits of the EU membership and meet the objectives of the Europe 2020 strategy

 

? Modernization of public institutions to enhance resource allocation and absorption of EU funds

 

? Complement the EU funding

 

During this period, Romania’s lending portfolio was US$2.05 bn.

During 2009-2013, six new operations were delivered: three DPLs, 1 DPL- DDO, Results Based Social Assistance System Modernization SIL and Modernization of Tax Administration SIL.

(Development Policy Loan with a Deferred Drawdown OptionDPL DDO:
??IBRD Flexible Loan for EUR 700 million, disbursed on Oct. 23, 2013
??18-year maturity, including 17.5 years of grace period, with bullet (i.e., one full installment)repayment of principal on August 1, 2031
??At disbursement, rate was equal to 6-Month EURIBOR for Euro plus fixed spread of 0.95%
??On Oct. 25, 2013 the interest rate of the full disbursed amount of EUR 700 million was fixed to its final maturity; the final fixed rate is 3.55%  
??February 1 and August 1 are the semiannual service dates (when interest payments are due))

 

26 new Reimbursable Advisory Services were signed, including Assistance to strengthen administrative

capacity and increase rate of EU Funds absorption (covering: Agriculture, Public Finance, Transport,

Education, Competition, Regional Development)

 

 

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