The Government approved on Wednesday a draft law for the ratification of the guarantee agreement between Romania and the International Bank for Reconstruction and Development (IBRD) signed in Bucharest on January 4, 2023 regarding the 100% guarantee of obligations related to the loan agreement (Draft on the institutional consolidation and resilience of the financial safety net) between the Bank Deposit Guarantee Fund and the IBRD, in the amount of 406 million EUR, Agerpres informs.

According to a press release from the Executive, the Ministry of Finance thus concludes a guarantee agreement with FGDB, which establishes the rights and obligations of the parties in applying the provisions of the guarantee agreement.

„The loan granted by the IBRD is preventive in nature, the withdrawals are carried out by the FGDB only if the triggering factors established by the loan agreement appear, thus there is no obligation to withdraw the amounts if the need for resources from the Fund does not arise. Through this guaranteed loan, the Fund will benefit of more advantageous costs, respectively of a low interest level, which will lead to the minimization of the risks of repayment of the loan guaranteed by the Romanian state. The sums necessary for the repayment of the loan, interest payments, commissions and other costs related to the preventive loan are ensures from the FGDB’s own resources,” the press release informs.

Agerpres