Romania and World Bank Group Renew Partnership to Reduce Inequality, Boost Competitiveness, and Accelerate the Green Transition

WASHINGTON, September 19, 2024-The World Bank Group's Board of Executive Directors has endorsed a new five-year Country Partnership Framework (CPF) for Romania. The framework aims to reduce poverty and promote prosperity across the country by improving human capital outcomes, creating better job opportunities and a more competitive economy, and speeding up the green transition.

Romania has made significant economic progress over the past 20 years, with per capita income rising from 26.4% of the EU average in 2000 to 78% in 2023. The country has also demonstrated remarkable resilience in the face of external challenges. However, regional inequalities and high poverty rates persist.

This CPF aims to revitalize Romania's growth model, increase productivity, and strengthen its ability to respond to global challenges like climate change. The strategy focuses on making an impact in three main areas: expanding access to education, healthcare, and social services, focusing on the underserved; unlocking private capital to create better jobs and a more dynamic business environment; and strengthening capacity to prevent and respond to external shocks, while enabling the energy transition.

"The World Bank Group is proud to continue supporting Romania as it advances its ambitious reform agenda and builds on the gains made in recent years. Our latest partnership framework comes at a crucial time for Romania as it seeks to balance economic growth, climate resilience, and social inclusion," said Anna Akhalkatsi, World Bank Country Director for the European Union. 

"This new Country Partnership Framework highlights the World Bank Group's commitment to unlocking private-sector potential for sustainable and inclusive growth. We aim to help Romania attract fresh private investment in green innovation, physical and digital connectivity infrastructure, financing for climate and inclusion, and new value chains." Ary Naïm, IFC Regional Manager for Central and South Europe, added.

The Board of Executive Directors also approved a new Disaster Risk Management Loan with a Catastrophe Deferred Drawdown option to help Romania implement key reforms and strengthen inclusive preparedness and response. The loan provides $500 million in contingency financing and advances important reforms for inclusive, multi-hazard disaster and climate resilience. The project will be complemented by technical assistance from the Global Facility for Disaster Reduction and Recovery.

Since 1991, the World Bank has provided over $15.4 billion in loans, guarantees, and grants to Romania. The current portfolio includes a mix of investment lending, analytical work, and technical assistance to support Romania's reform priorities. IFC has also invested over $5 billion through projects supporting private sector development. Building on more than 30 years of partnership, the World Bank Group and Romania will continue working together during this new phase of cooperation to create a world free of poverty.