The 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 reform program to put its public finances on a sustainable footing while laying the groundwork for stronger, more inclusive growth through fiscal consolidation.

"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 reforms to restore fiscal health, catalyse private investment, and create jobs. This financing reflects our confidence in Romania's efforts and our long-standing partnership with the government."

The loan is organised 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% 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 digitalisation, and reliable and affordable energy.