Romania's Economy Ministry gives up credits from EBRD and World Bank, but keeps EIB

Romania's Economy and Finance Ministry (MEF) will renounce the credits contracted from the European Bank for Reconstruction and Development (EBRD) and from the World Bank, a strategy document of the ministry reads.

However, the ministry says it will continue to obtain finance from the European Investment Bank (EIB) and occasionally from the Council of Europe Development Bank (CEB), due to their comparative advantage from a costs perspective and to the important role in strengthening the capacity of absorption of European funds.

The international financial institutions will gradually decrease their crediting operations on the Romanian territory.

The government debt will instead be contracted mainly by issuing state securities in lei and foreign currency on the domestic and international markets, according to the strategy posted by MEF.

State loans stood at 29.08 billion lei at the end of 2007, representing 38.2 percent of the total government debt of 76.13 billion lei. Interbank treasury certificates in lei and foreign currency totaled 2.51 billion lei, state bonds stood at 7.65 billion lei, Eurobonds amounted to 7.22 billion lei, financial leasing contracts summed 251.9 million lei and the rest of 29.41 billion lei represented other financing sources.

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