Romania - First Fiscal and Growth Development Policy Loan Program

Overview & Synopsis

The development objective of the First Fiscal and Growth Development Policy Loan Program for Romania is to support the Government of Romania in strengthening resilience by :(i) restoring fiscal sustainability; and (ii) enabling private sector-led growth. The policy matrix addresses Romania’s interconnected fiscal and economic challenges through two complementary pillars, balancing the urgent need for a major fiscal sustainability effort through tax and spending reforms (Pillar 1), while fostering private sector-led growth by expanding access to finance, promoting innovation, and mobilizing private investment to boost competitiveness and job creation (pillar 2). Through these pillars, the operation also supports Romania’s efforts to strengthen resilience and adaptive capacity by: (i) reinforcing fiscal sustainability, (ii) facilitating investments to diversify Romania’s energy mix, (iii) improving risk management frameworks, and (iv) creating space for climate adaptation investments.