The European Commission has transferred to Romania today 1.8 billion euros in the form of pre-financing, the equivalent of 13% of the total grants allocated to this country under the Recovery and Resilience Mechanism.
The pre-financing payment will support the start of the implementation of the investment and reform measures included in Romania’s Recovery and Resilience Plan.
Romania is expected to receive a total of EUR 29.2 billion during its plan, of which EUR 14.2 billion in grants and EUR 14.9 billion in loans.
“Today’s payment was made as a result of the success of the first lending operations under the NextGenerationEU. By the end of the year, the Commission intends to mobilize up to EUR 80 billion in the form of long-term funding, which will be complemented by short-term securities (“EU-Bills”), to finance the first planned payments to Member States within NextGenerationEU “, reads a EC press release.
The recovery and resilience mechanism is at the heart of the NextGenerationEU, which will provide EUR 800 billion (in current prices) to support investment and reform in all Member States. Romania’s plan is part of the EU’s unprecedented response to emerge stronger from the COVID-19 pandemic crisis, to promote the green transition and the digital transition, and to strengthen resilience and cohesion in our societies.
FinMin: GEO to provide the necessary financial circuits to spend the money
After the payment of the EUR 1.8 bln installment, Romanian Finance Minister Adrian Câciu said that “we need to put this money to work quickly for the benefit of communities across the country”.
The Minister of Finance stated that he will work together with colleagues from the Ministry of European Investments and Projects to draw up an emergency ordinance to establish the financial circuits necessary for the use of these funds.
“Providing a legal framework to be able to spend this money is a top priority“, Adrian Câciu posted on Facebook page.